20-1573. Net retained liability
A. The net retained liability of any title insurer under any single insurance risk
as defined in section 20-1562, paragraphs 4 and 7 shall not exceed fifty per cent of the
net amount remaining after deducting from the sum of its capital, surplus, unearned
premium reserve and voluntary reserves the value, if any, assigned in such summation to
its title insurance plants, all as shown in its most recent report on file with the
director. The same limitation shall apply to any secondary risk assumed by means of
reinsurance or coinsurance except, whenever the primary retained liability of a ceding
company shall equal or exceed ten per cent of the single insurance risk liability, the
net retained or assumed liability limit of this section may be increased by an additional
two hundred fifty thousand dollars, but in no event above one hundred per cent of the net
amount remaining after deducting from the sum of its capital and surplus the value, if
any, assigned in such summation to its title insurance plants, all as shown by its most
recent report on file with the director.
B. Nothing in this section is intended to limit the amount of a single insurance
risk, as defined in section 20-1562, paragraph 7, that may be written or assumed by a
title insurer, provided, however, that every title insurer shall cede, to one or more
other title insurers, on or before the effective date of such writing or assumption, such
portion, or portions, of any risk as shall be sufficient to bring its net retained
liability thereunder within the limits set forth in this section; and provided further
that each such cession of risk shall also be within the limits of this section as applied
to the sum of the capital, surplus, unearned premium reserve and voluntary reserves, less
the value, if any, assigned in such summation to the title insurance plants of the
assuming and reinsuring title insurer, as shown by its most recent report on file with
the supervisory agency in the state of its domicile.
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