§ 58-43-25. Limitation of fire insurance risks. - North Carolina Statutes

§58‑43‑25.  Limitation of fire insurance risks.

No insurer authorized to do inthis State the business of fire insurance shall expose itself to any loss onany one fire risk, whether located in this State or elsewhere, in an amountexceeding ten percent (10%) of its surplus to policyholders, except that in thecase of risks adequately protected by automatic sprinklers or risks principallyof noncombustible construction and occupancy such insurer may expose itself toany loss on any one risk in an amount not exceeding twenty‑five percent(25%) of the sum of (i) its unearned premium reserve and (ii) its surplus topolicyholders. Any risk or portion of any risk which shall have been reinsuredshall be deducted in determining the limitation of risk prescribed in thissection. (1945, c. 378.)