Ch. 36                                     1995 LAWS OF MARYLAND

(B) ALIEN INSURERS.

AS TO ALIEN INSURERS, THIS SUBTITLE APPLIES ONLY TO RISKS AND SURPLUS
TO POLICYHOLDERS OF AN ALIEN INSURER'S UNITED STATES BRANCH.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 72(4) and (6).

In subsection (a)(8) of this section, the reference to a loss that cannot be
ascertained when "the coverage is provided" is added for clarity.

Defined terms: "Alien insurer" § 1-101
"Annuity" § 1-101
"Health insurance" § 1-101
"Insurer" § 1-101
"Life insurance" § 1-101
"Policy" § 1-101

"Surplus to policyholders" § 5-1001
"Title insurance" § 1-101
"Wet marine and transportation insurance" § 1-101

5-1003. LIMITATION OF RISK — IN GENERAL.

(A)     AMOUNT OF LIMITATION.

(1)     SUBJECT TO § 5-1004 OF THIS SUBTITLE, AN INSURER MAY NOT
RETAIN A RISK ON ANY ONE SUBJECT OF INSURANCE, WHETHER LOCATED OR TO BE
PERFORMED IN THE STATE OR OUTSIDE OF THE STATE, IN AN AMOUNT EXCEEDING
10% OF THE INSURER'S SURPLUS TO POLICYHOLDERS.

(2)     AN INSURER'S SURPLUS TO POLICYHOLDERS SHALL BE
DETERMINED AT THE TIME A RISK IS ASSUMED FROM THE MORE RECENT OF:

(I)      THE LAST SWORN STATEMENT OF THE INSURER ON FILE WITH
THE COMMISSIONER; OR

(II)    THE LAST EXAMINATION REPORT OF THE INSURER.

(B)     DEDUCTION OF REINSURANCE.

IN DETERMINING THE AMOUNT OF RISK RETAINED BY AN INSURER, A
DEDUCTION SHALL BE MADE FOR REINSURANCE CEDED BY THE INSURER FOR
WHICH CREDIT IS ALLOWED UNDER § 5-904 OF THIS TITLE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 72(1), (3), and, except as it defined "surplus
to policyholders", (5).

In subsection (a)(1) of this section, the introductory language, "[s]ubject to §
5-1004 of this subtitle", is added to reflect that certain special provisions exist
for surety insurers and surety risks.

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