Limitation of single risk

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  • (a) No insurer, other than a title insurer, may retain any risk on any one subject of insurance, regardless of where located or to be performed, in an amount exceeding 10 percent of its surplus to policyholders.

  • (b) For the purposes of this section, a “subject of insurance” as to insurance against fire includes all properties insured by the same insurer which are reasonably subject to loss or damage from the same fire.

  • (c) Reinsurance in an alien reinsurer not qualified under section 226 of this title may not be deducted in determining risk retained for the purposes of this section.

  • (d) In the case of surety insurance, the net retention shall be computed after deduction of reinsurances, the amount assumed by any co-surety, the value of any security deposited, pledged, or held subject to the consent of the surety and for the protection of the surety.

  • (e) [Deleted.]


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