# Ongoing Evaluation: Maintaining Vigilance Throughout the Insurance Lifecycle

> FRFIs must continuously evaluate their mortgage insurance counterparty throughout the contract's lifespan.

Category: Strategy
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/strategy/ongoing-evaluation-maintaining-vigilance-throughout-the-insurance-lifecycle

## Answer
FRFIs must continuously evaluate their mortgage insurance counterparty throughout the contract's lifespan. Evaluation should extend beyond contract expiration to assess potential insurance recoverables from expected future claims, particularly for material unreported losses. Compliance with the mortgage insurer's underwriting, valuation, and information requirements is essential to maintain insurance validity.

## Related guide
- https://ratellow.com/guides/mortgage-insurance-life-disability

## Sources
- Mortgage insurance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.5.1
- Footnotes — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-guideline-2026
- Page 2 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=2
- OSFI exempts uninsured mortgage straight switches from the prescribed MQR and implements portfolio LTI limits — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/osfi-exempts-uninsured-mortgage-straight-switches-prescribed-mqr-implements-portfolio-lti-limits