J. MILLARD TAWES, GOVERNOR                            665

CHAPTER 482
(House Bill 84)

AN ACT to add a new Section 86A to Article 48A of the Annotated
Code of Maryland (1957 Edition), title "Insurance", sub-title
"General Provisions", to follow immediately after Section 86 there-
of, providing for the limiting of the maximum single risk which
may be assumed by a stock insurance company, a mutual insurance
company, a Reciprocal Exchange or Inter-Insurer, and/or a Lloyd's
Association; AND PROVIDING A TEMPORARY EXCEPTION
FROM THE PROVISIONS OF THIS ACT FOR CERTAIN IN-
SURANCE COMPANIES LICENSED AS OF JANUARY 1, 1961.

Section 1. Be it enacted by the General Assembly of Maryland,
That a new Section 86A be and it is hereby added to Article 48A of
the Annotated Code of Maryland (1957 Edition), title "Insurance",
sub-title "General Provisions", to follow immediately after Section
86 thereof and to read as follows:

86A. Limitation of risk.

(a) Limitation of risk in general.

(1)  No stock insurance company, mutual insurance company, Re-
ciprocal Exchange or Inter-Insurer, and/or a Lloyd's Association
doing business in this state, shall expose itself to any loss on any
one risk in an amount exceeding ten per cent of its surplus to policy-
holders; except mutual insurance companies and Reciprocal Ex-
changes or Inter-Insurers which write insurance on an assessable
basis as to which the limitation imposed by Section 234 (c) of this
Article shall apply.

(2) Any risk or portion of any risk which shall have been reinsured
in an assuming insurer which (1) is licensed to do such business in
this state or (2) is licensed to do such business in any state of the
United States and has not been disapproved therefor by written
order of the Commissioner filed in his office, shall be deducted in de-
termining the limitation of risk prescribed in this section.

(3)  This section shall not apply to the insurance of marine risks,
or marine protection and indemnity risks, or workmen's compensation
or employer's liability risks, or to certificates of title or guaranties
of title or policies of title insurance, or to life insurance, accident
and health insurance, or annuity contracts.

(4) For the purpose of determining the limitation of risk under
any provision of this section, "surplus to policyholders" shall (a)
be deemed to include any voluntary reserves, or any part thereof,
which are not required by or pursuant to law, and (b) be determined
from the last sworn statement of such insurer on file with the Com-
missioner pursuant to law, or by the last report of examination filed
by the Commissioner, whichever is more recent at the time of as-
sumption of such risk.

Explanation: Italics indicate new matter added to existing law.

[Brackets] indicate matter stricken from existing law.
CAPITALS indicate amendments to bill.
Strike out indicates matter stricken out of bill.