If a rebuttal to our decision to rescind is received and the insured provides additional information supporting the  continuation (i.e., non-rescission) of coverage, the claim is re-examined internally by a second, independent group of  individuals. If the additional information supports the continuation of coverage, the insurance is reinstated and the claim is paid.  After completion of this process, if we determine that the loan did not qualify for coverage, the insurance certificate is  rescinded (and the premium refunded) and we consider the rescission to be final and resolved.  Although we may make a final  determination internally with respect to a rescission, it is possible that a challenge to our decision to rescind coverage may be  brought during a specified period of time after we have rescinded coverage. Under our master insurance policy , any suit or  action arising from any right of the insured under the policy must be commenced within two years after such right first arose,  and within three years for certain other policies, including certain pool insurance policies. Claim Curtailments . In addition, we have rights under our master insurance policy to curtail, and in some circumstances,  deny claims due to servicer negligence. Examples of servicer negligence may include, without limitation: Although we could seek post-claim recoveries from the beneficiaries of our policies if we later determine that a claim was  not valid, because our loss mitigation process is designed to ensure compliance with our policies prior to payment of claim, we  have not sought, nor do we currently expect to seek, recoveries from the beneficiaries of our mortgage insurance policies once a  claim payment has been made. •  a failure to report information to us on a timely basis as required under our master insurance policy; •  a failure to pursue loss mitigation opportunities presented by borrowers, realtors and/or any other interested  parties; •  a failure to pursue loan modifications and/or refinancings through programs available to borrowers or an undue  delay in presenting claims to us (including as a result of improper handling of foreclosure proceedings), which  increases the interest (up to a maximum of two years) or other components of a claim we are required to pay; and •  a failure to initiate and diligently pursue foreclosure or other appropriate proceedings within the timeframe  specified in our master insurance policy . E.  Risk Management 1.  Risk Origination and Servicing Our mortgage insurance business employs a comprehensive risk management function, which is responsible for  establishing our credit and counterparty risk policies, monitoring compliance with our policies, portfolio management and  communication of credit related issues to management and the credit committee of our board of directors.  We believe that understanding our business partners and customers is a key component of managing risk.  Accordingly, we  assign individual risk managers to specific lenders and servicers so that they can more ef fectively perform ongoing business- level due diligence. This also allows us to better customize our credit and servicing policies to address individual lender - specific and servicer-specific strengths and weaknesses. We manage the allocation of capital within our mortgage insurance business by , among other things, establishing portfolio  limits for product type, loan attributes, geographic concentration and counterparties.  We also identify, evaluate and negotiate  potential transactions for terminating insurance risk and for distributing risk to others through reinsurance arrangements  discussed below under “ Reinsurance—Ceded .” As part of our portfolio management function, we monitor and analyze the performance of various risks in our mortgage  insurance portfolio. We use this information to develop our mortgage credit risk and counterparty risk policies, and as a  component of our default and prepayment analytics.  We have a valuation group that analyzes the current composition of our mortgage insurance portfolio and monitors for  compliance with our internally defined risk parameters.  This analysis involves assessing risks to the portfolio from the market  (e.g., the effects of changes in home prices and interest rates) and analyzing risks from particular lenders, products and  geographic locales. 2.  Portfolio Management 20