J. MILLARD TAWES, Governor                       1011

destination, in respect to, appertaining to or in connection with,
any and all risks or perils of navigation, transit or transporta-
tion, and while being prepared for and while awaiting shipment,
and during any delays, storage, transshipment or reshipment inci-
dent thereto.

71.    "Title Insurance" Defined.

Title insurance is insurance of owners of property or others hav-
ing an interest therein, or liens or encumbrances thereon, against
loss by encumbrance, or defective titles, or invalidity, or adverse
claim to title.

72.    Limit of Risk.

(1)   No insurer shall retain any risk on any one subject of insur-
ance, whether located or to be performed in this State or elsewhere,
in an amount exceeding ten percent (10%) of its surplus to policy-
holders.

(2)   A "subject of insurance" for the purposes of this section, as
to insurance against fire and hazards other than windstorm, earth-
quake, or other catastrophe hazards, includes all properties insured
by the same insurer which are customarily considered by under-
writers to be subject to loss or damage from the same fire or the
same occurrence of such other hazard insured against.

(3)   Reinsurance ceded for which credit is allowed pursuant to
Section 74 shall be deducted in determining risk retained.

(4)   As to alien insurers, this section shall relate only to risks and
surplus to policyholders of the insurer's United States branch.

(5)   "Surplus to policyholders" for the purposes of this section,
in addition to the insurer's capital and surplus shall be deemed to
include any voluntary reserves which are not required pursuant to
law, and shall be determined from the last sworn statement of the
insurer on file with the Commissioner, or by the last report of exami-
nation of the insurer, whichever is the more recent at time of
assumption of risk.

(6)   This section shall not apply to life or health insurance, annu-
ities, title insurance, insurance of wet marine and transportation
risks, workmen's compensation insurance, employer's liability cover-
ages, nor to any policy or type of coverage as to which the maximum
possible loss to the insurer is not readily ascertainable on issuance of
the policy.

(7)   Limitation of Surety Risks.

(i) In applying the limitation of subsection (1) of this section to
surety risks, the net amount of exposure on any one surety risk
shall be deemed within the limit of ten per cent if such insurer is
protected in excess of that amount by:

(A)   authorized reinsurance; or

(B)   the co-suretyship of any other surety insurer authorized to
do such business in this state; or

(C)   a deposit of property with it in pledge or conveyance of prop-
erty to it in trust for its protection; or