1. (a)

   1. (1) Subject to § 5-1004 of this subtitle and except as provided under § 5-1005 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. (2) An insurer's surplus to policyholders shall be determined at the time a risk is assumed from the more recent of:

      1. (i) the last sworn statement of the insurer on file with the Commissioner; or
      2. (ii) the last examination report of the insurer.
2. (b) 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.

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 1999, c. 592, § 1, eff. July 1, 1999.

Formerly Art. 48A, § 72.