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

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 5. Assets, Liabilities, Reserves, and Investments of Insurers
Subtitle 10. Limitation of Risk (Refs & Annos)
MD Code, Insurance, § 5-1003
§ 5-1003. Limitation of risk--In general
Retention of risk on any one subject of insurance prohibited
(a)(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.
Deduction made for reinsurance ceded by insurer
(b) 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.

Credits

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 1999, c. 592, § 1, eff. July 1, 1999.
Formerly Art. 48A, § 72.
MD Code, Insurance, § 5-1003, MD INSURANCE § 5-1003
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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