§431:3-306  Limit of risk.  (a)  No
insurer shall retain net any risk on any one subject of insurance, whether
located or to be performed in this State or elsewhere, in an amount exceeding
ten per cent 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 customarily considered by underwriters to
be subject to loss or damage from the same fire.



(c)  Reinsurance in any reinsurer not qualified
under article 4A 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)  This section shall not apply to insurance
of 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]