Limitations on exposure to risks or hazards.
No company other than a mutual or reciprocal company doing business in the District shall expose itself to any loss on any one risk or hazard, whether located in the District or outside of the District, to an amount exceeding 10% of the sum of its capital stock and surplus. No mutual or reciprocal company shall expose itself to any loss on any one risk or hazard, whether located in the District or outside of the District, to an amount exceeding 10% of its surplus. No portion of any such risk or hazard which shall have been reinsured in a company authorized to do business in the District shall be included in determining limitation of risk; provided, that the provisions of this section shall not apply to the insurance of workmen’s compensation, employers’ liability, marine, or inland marine risks.
Annotations
Oct. 9, 1940, 54 Stat. 1070, ch. 792, ch. II, § 12 Apr. 26, 1994, D.C. Law 10-103, § 3, 41 DCR 1005 Mar. 8, 2007, D.C. Law 16-232, § 202(b), 54 DCR 368 Department of Insurance abolished: See Historical and Statutory Notes following § 31-2501.03. For temporary (225 day) amendment of section, see § 3 of Insurance Omnibus Temporary Amendment Act of 1993 (D.C. Law 10-76, March 17, 1994, law notification 41 DCR 1626). D.C. Law 16-232 substituted “any one risk or hazard, whether located in the District or outside of the District” for “any 1 risk or hazard in the District”. 1973 Ed., § 35-1315. 1981 Ed., § 35-1515. This section is referenced in § 31-2502.02 and § 31-3931.06. Limitation of risk for companies operating on Lloyd’s plan, see § 31-2502.20a. Capital and surplus requirements for foreign and alien companies, see § 31-2502.22.
Sourced from the DC Council Open Law Library (public domain).
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