40-1107a. Same; title insurance company; exceptions.
40-1107a
40-1107a. Same; title insurance company; exceptions.No title insurance company organized under the laws of this state,engaged exclusively in the business of insuring titles to real estate,shall expose itself to a loss on any one risk or hazard to an amountexceeding fifty percent (50%) of its paid-up capital and surplus, unlessthe excess shall be reinsured in some company duly authorized to transactsimilar business in this state or in any other state, provided such acompany not authorized to do business in this state meets or exceeds thefinancial requirements as to capital and surplus of a title insurancecompany doing business in this state; and no title insurance company notorganized under the laws of this state engaged exclusively in the businessof insuring titles to real estate, transacting business in this state,shall expose itself to a loss on any one risk or hazard in this state to anamount exceeding fifty percent (50%) of its paid-up capital and surplus,unless the excess shall be reinsured either in some company duly authorizedto transact similar business in this state or in any other state, providedsuch a company not authorized to do business in this state meets or exceedsthe financial requirements as to capital and surplus of a title insurancecompany doing business in this state. Any title insurance company organizedunder the laws of this state may take credit as an asset or as a deductionfrom loss and unearned premium reserves on such ceded risks to the extentreinsured.
History: L. 1971, ch. 168, § 2; July 1.