§431:3-306  Limit of risk.  (a)  Noinsurer shall retain net any risk on any one subject of insurance, whetherlocated or to be performed in this State or elsewhere, in an amount exceedingten per cent of its surplus to policyholders.

(b)  For the purposes of this section, asubject of insurance as to insurance against fire includes all propertiesinsured by the same insurer which are customarily considered by underwriters tobe subject to loss or damage from the same fire.

(c)  Reinsurance in any reinsurer not qualifiedunder article 4A may not be deducted in determining risk retained for thepurposes of this section.

(d)  In the case of surety insurance, the netretention shall be computed after deduction of reinsurances, the amount assumedby any co-surety, the value of any security deposited, pledged, or held subjectto the consent of the surety and for the protection of the surety.

(e)  This section shall not apply to insuranceof marine risks or marine protection and indemnity risks. [L 1987, c 347, pt of§2; am L 1993, c 321, §10; am L 2004, c 122, §13]