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Unannotated Code of Maryland (Last Updated: May 16, 2014) |
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INSURANCE |
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TITLE 5. ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS |
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SUBTITLE 10. LIMITATION OF RISK |
§ 5-1003. Limitation of risk -- In general
Latest version.
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(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.