Section 5-1003 - Limitation of risk - In general. - Maryland Statutes

§ 5-1003. Limitation of risk - In general.
 

(a)  Amount of limitation.-  

(1) Subject to § 5-1004 of this subtitle and except as provided under § 5-1005 of this subtitle, an insurer may not retain a risk on any one subject of insurance, whether located or to be performed in the State or outside of the State, in an amount exceeding 10% of the insurer's surplus to policyholders. 

(2) An insurer's surplus to policyholders shall be determined at the time a risk is assumed from the more recent of: 

(i) the last sworn statement of the insurer on file with the Commissioner; or 

(ii) the last examination report of the insurer. 

(b)  Deduction of reinsurance.- In determining the amount of risk retained by an insurer, a deduction shall be made for reinsurance ceded by the insurer for which credit is allowed under § 5-904 of this title. 
 

[An. Code 1957, art. 48A, § 72; 1995, ch. 36; 1999, ch. 592.]