clear space clear space clear space white space
 r c h i v e s   o f   M a r y l a n d   O n l i n e
  Maryland State Archives | Index | Help | Search search for:
clear space
white space
Session Laws, 1963
Volume 671, Page 1010   View pdf image (33K)
 Jump to  
clear space clear space clear space white space

1012                            LAWS OF MARYLAND                       [CH. 553

(D)   a conveyance or mortgage of property for its protection; or

(E)   in case a suretyship or guaranty obligation was made on
behalf or on account of a fiduciary holding property in a trust
capacity, by such a deposit or other disposition of a portion of the
property so held in trust that no future sale, mortgage pledge or
other disposition can be made thereof except with the consent of such
insurer or by decree or order of a court of competent jurisdiction.

(ii) Notwithstanding the limitation prescribed in subsection (1)
any such insurer may execute bonds of the kind commonly known as
transportation or warehousing bonds for United States internal rev-
enue taxes in a net amount not exceeding twenty per cent of its
surplus to policyholders, determined as provided in subsection (5).

(iii) In determining the net amount of exposure on any one such
risk, the following rules shall be applicable to the kinds of obliga-
tions hereinafter described:

(A)   When the penalty of a suretyship obligation exceeds the
amount of a judgment prescribed therein as appealed from and
thereby secured, or exceeds the amount of the subject matter in con-
troversy or of the estate in the hands of the fiduciary for the per-
formance of whose duties it is conditioned, the bond may be exe-
cuted by such insurer if the actual amount of the judgment or the
subject matter in controversy or estate not subject to supervision
or control of the surety is not in excess of such limitation of ten
per cent.

(B)   When the penalty of a suretyship obligation executed for the
performance of a contract exceeds the contract price, the latter
amount shall be taken as the basis for estimating the limit of risk
within the meaning of this section.

(iv) In addition to any other limitation contained in this article,
no authorized surety insurer shall at any one time be exposed to
risks on suretyship obligations guaranteeing the deposits of any
single financial institution in an aggregate net amount in excess of
ten per cent of the surplus to policyholders of such surety insurer,
determined as provided in subsection (5), unless it shall be protected
in excess of that amount by security in accordance with subsec-
tion (7) (i).

73.    "Reinsurance" Defined.

"Reinsurance" is a contract under which an originating insurer
(called the "ceding" insurer) procures insurance for itself in an-
other insurer (called the "assuming" insurer or the "reinsurer")
with respect to part or all of an insurance risk of the originating

74.    Reinsurance.

(1)   An insurer may accept reinsurance only of such risks, and
retain risk thereon within such limits, as it is otherwise authorized
to insure.

(2)   Except as provided in sections 273 and 274 (bulk reinsur-
ance) , an insurer may reinsure all or any part of any particular risk.
No credit shall be allowed, as an asset or a deduction from liability,
to any ceding insurer for such reinsurance unless the assuming in-


clear space
clear space
white space

Please view image to verify text. To report an error, please contact us.
Session Laws, 1963
Volume 671, Page 1010   View pdf image (33K)
 Jump to  

This web site is presented for reference purposes under the doctrine of fair use. When this material is used, in whole or in part, proper citation and credit must be attributed to the Maryland State Archives. PLEASE NOTE: The site may contain material from other sources which may be under copyright. Rights assessment, and full originating source citation, is the responsibility of the user.

Tell Us What You Think About the Maryland State Archives Website!

An Archives of Maryland electronic publication.
For information contact

©Copyright  October 11, 2023
Maryland State Archives