Maryland Statutes
Subtitle 10 - Limitation of Risk
Section 5-1003 - Limitation of Risk -- in General

(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.
    (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.

Structure Maryland Statutes