(a) No companytransacting fidelity or surety business in this State shall expose itself toany loss on any one fidelity or surety risk or hazard in an amount exceedingten per centum (10%) of its policyholders' surplus, unless it shall beprotected in excess of that amount by:
(1) Reinsurance in suchform as to enable the obligee or beneficiary to maintain an action thereonagainst the company reinsured jointly with such reinsurer and, upon recoveringjudgment against such reinsured, to have recovery against such reinsurer forpayment to the extent in which it may be liable under such reinsurance and indischarge thereof; or
(2) The cosuretyship ofsuch a company similarly authorized; or
(3) By deposit with it inpledge or conveyance to it in trust for its protection of property; or
(4) By conveyance ormortgage for its protection; or
(5) In case a suretyshipobligation was made on behalf or on account of a fiduciary holding property ina trust capacity, by deposit or other disposition of a portion of the propertyso held in trust that no future sale, mortgage, pledge or other disposition canbe made thereof without the consent of such company; except by decree or orderof a court of competent jurisdiction;
(b) Provided:
(1) That such companymay execute what are known as transportation or warehousing bonds for UnitedStates internal revenue taxes to an amount equal to fifty per centum (50%) ofits policyholders' surplus;
(2) That, when thepenalty of the suretyship obligation exceeds the amount of a judgment describedtherein as appealed from and thereby secured, or exceeds the amount of thesubject matter in controversy or of the estate in the hands of the fiduciaryfor the performance of whose duties it is conditioned, the bond may be executedif the actual amount of the judgment or the subject matter in controversy orestate not subject to the supervision or control of the surety is not in excessof such limitation; and
(3) That, when thepenalty of the suretyship obligation executed for the performance of a contractexceeds the contract price, the latter shall be taken as the basis forestimating the limit of risk within the meaning of this section.
(c) No such companyshall, anything to the contrary in this section notwithstanding, executesuretyship obligations guaranteeing the deposits of any single financialinstitution in an aggregate amount in excess of ten per centum (10%) of thepolicyholders' surplus of such surety, unless it shall be protected in excess ofthat amount by credits in accordance with subdivisions (1), (2), (3) or (4) ofsubsection (a) of this section: Provided, nothing in this section shall beconstrued to make invalid any contract entered into by such company withanother person, firm, corporation or municipal corporation, notwithstanding anyprovisions of this section. (1911, c. 28; C.S., s. 6382;1931, c. 285; 1945, c. 377.)
(a) No companytransacting fidelity or surety business in this State shall expose itself toany loss on any one fidelity or surety risk or hazard in an amount exceedingten per centum (10%) of its policyholders' surplus, unless it shall beprotected in excess of that amount by:
(1) Reinsurance in suchform as to enable the obligee or beneficiary to maintain an action thereonagainst the company reinsured jointly with such reinsurer and, upon recoveringjudgment against such reinsured, to have recovery against such reinsurer forpayment to the extent in which it may be liable under such reinsurance and indischarge thereof; or
(2) The cosuretyship ofsuch a company similarly authorized; or
(3) By deposit with it inpledge or conveyance to it in trust for its protection of property; or
(4) By conveyance ormortgage for its protection; or
(5) In case a suretyshipobligation was made on behalf or on account of a fiduciary holding property ina trust capacity, by deposit or other disposition of a portion of the propertyso held in trust that no future sale, mortgage, pledge or other disposition canbe made thereof without the consent of such company; except by decree or orderof a court of competent jurisdiction;
(b) Provided:
(1) That such companymay execute what are known as transportation or warehousing bonds for UnitedStates internal revenue taxes to an amount equal to fifty per centum (50%) ofits policyholders' surplus;
(2) That, when thepenalty of the suretyship obligation exceeds the amount of a judgment describedtherein as appealed from and thereby secured, or exceeds the amount of thesubject matter in controversy or of the estate in the hands of the fiduciaryfor the performance of whose duties it is conditioned, the bond may be executedif the actual amount of the judgment or the subject matter in controversy orestate not subject to the supervision or control of the surety is not in excessof such limitation; and
(3) That, when thepenalty of the suretyship obligation executed for the performance of a contractexceeds the contract price, the latter shall be taken as the basis forestimating the limit of risk within the meaning of this section.
(c) No such companyshall, anything to the contrary in this section notwithstanding, executesuretyship obligations guaranteeing the deposits of any single financialinstitution in an aggregate amount in excess of ten per centum (10%) of thepolicyholders' surplus of such surety, unless it shall be protected in excess ofthat amount by credits in accordance with subdivisions (1), (2), (3) or (4) ofsubsection (a) of this section: Provided, nothing in this section shall beconstrued to make invalid any contract entered into by such company withanother person, firm, corporation or municipal corporation, notwithstanding anyprovisions of this section. (1911, c. 28; C.S., s. 6382;1931, c. 285; 1945, c. 377.)
(a) No companytransacting fidelity or surety business in this State shall expose itself toany loss on any one fidelity or surety risk or hazard in an amount exceedingten per centum (10%) of its policyholders' surplus, unless it shall beprotected in excess of that amount by:
(1) Reinsurance in suchform as to enable the obligee or beneficiary to maintain an action thereonagainst the company reinsured jointly with such reinsurer and, upon recoveringjudgment against such reinsured, to have recovery against such reinsurer forpayment to the extent in which it may be liable under such reinsurance and indischarge thereof; or
(2) The cosuretyship ofsuch a company similarly authorized; or
(3) By deposit with it inpledge or conveyance to it in trust for its protection of property; or
(4) By conveyance ormortgage for its protection; or
(5) In case a suretyshipobligation was made on behalf or on account of a fiduciary holding property ina trust capacity, by deposit or other disposition of a portion of the propertyso held in trust that no future sale, mortgage, pledge or other disposition canbe made thereof without the consent of such company; except by decree or orderof a court of competent jurisdiction;
(b) Provided:
(1) That such companymay execute what are known as transportation or warehousing bonds for UnitedStates internal revenue taxes to an amount equal to fifty per centum (50%) ofits policyholders' surplus;
(2) That, when thepenalty of the suretyship obligation exceeds the amount of a judgment describedtherein as appealed from and thereby secured, or exceeds the amount of thesubject matter in controversy or of the estate in the hands of the fiduciaryfor the performance of whose duties it is conditioned, the bond may be executedif the actual amount of the judgment or the subject matter in controversy orestate not subject to the supervision or control of the surety is not in excessof such limitation; and
(3) That, when thepenalty of the suretyship obligation executed for the performance of a contractexceeds the contract price, the latter shall be taken as the basis forestimating the limit of risk within the meaning of this section.
(c) No such companyshall, anything to the contrary in this section notwithstanding, executesuretyship obligations guaranteeing the deposits of any single financialinstitution in an aggregate amount in excess of ten per centum (10%) of thepolicyholders' surplus of such surety, unless it shall be protected in excess ofthat amount by credits in accordance with subdivisions (1), (2), (3) or (4) ofsubsection (a) of this section: Provided, nothing in this section shall beconstrued to make invalid any contract entered into by such company withanother person, firm, corporation or municipal corporation, notwithstanding anyprovisions of this section. (1911, c. 28; C.S., s. 6382;1931, c. 285; 1945, c. 377.)
