(a) No stock insurance company doing business in this state shall expose itself to loss on any one risk to an amount exceeding ten per cent of its paid-up capital and surplus; but, in determining the amount of such risk, no portion thereof that has been reinsured in any insurance company that meets the requirements of section 38a-85 or 38a-86 shall be included.
(b) No mutual insurance company doing business in this state shall expose itself to loss on any one risk to an amount exceeding ten per cent of its net surplus which limit on any one risk shall, in no case, exceed the amount authorized by the charter, bylaws or board of directors of the company; but, in determining the amount of such risk, no portion thereof that has been reinsured in any insurance company that meets the requirements of section 38a-85 or 38a-86 shall be included.
(1949 Rev., S. 6115; P.A. 90-243, S. 52; P.A. 93-239, S. 18; P.A. 17-59, S. 4.)
History: P.A. 90-243 deleted the references to “fire” insurance companies; Sec. 38-110 transferred to Sec. 38a-73 in 1991; P.A. 93-239 deleted references limiting applicability to risks “in this state”, and eliminated provision including two and one-half times the amount of the total cash premiums or premium deposits in determining a limitation of risks; P.A. 17-59 designated existing provisions re stock insurance companies doing business in this state as Subsec. (a), designated existing provisions re mutual insurance companies doing business in this state as Subsec. (b), replaced references to insurance companies authorized to do business in this state with references to insurance companies that meet the requirements of Secs. 38a-85 or 38a-86, and made technical changes.