§ 58-3-105. Limitation of risk. - North Carolina Statutes

§58‑3‑105.  Limitation of risk.

Except as otherwise providedin Articles 1 through 64 of this Chapter, no insurer doing business in thisState shall expose itself to any loss on any one risk in an amount exceedingten percent (10%) of its surplus to policyholders.  Any risk or portion of anyrisk which shall have been reinsured shall be deducted in determining thelimitation of risk prescribed in this section.  This section shall not apply tolife insurance or to the insurance of marine risks, or marine protection andindemnity risks, or workers' compensation or employer's liability risks, or tocertificates of title or guaranties of title or policies of title insurance. For the purpose of determining the limitation of risk under any provision ofArticles 1 through 64 of this Chapter, "surplus to policyholders"shall

(1)        Be deemed to includeany voluntary reserves, or any part thereof, which are not required by orpursuant to law, and

(2)        Be determined fromthe last sworn statement of such insurer on file with the Commissioner pursuantto law, or by the last report on examination filed by the Commissioner,whichever is more recent at the time of assumption of such risk.

In applying the limitation ofrisk under any provision of Articles 1 through 64 of this Chapter to alieninsurers, such provision shall be deemed to refer to the exposure to risk andto the surplus to policyholders of the United States branch of such alieninsurer. (1945, c. 377; 1991, c. 636, s. 3.)