Vermont § 3371 - Limits of risk

§ 3371. Limits of risk

• (a) No insurer shall retain any risk on any one subject of insurance, whether located
  or to be performed in this State or elsewhere, in an amount exceeding 10 percent of
  its surplus to policyholders unless otherwise authorized by the Commissioner. (b) A “subject of insurance” for the purposes of this section, as to insurance provided
  for protection against fire, perils, hazards, or causes of loss, other than earthquake
  and other catastrophic hazards, includes all properties insured by the same insurer
  that are customarily considered by underwriters to be subject to loss or damage from
  the same fire or the same occurrence of any other hazard insured against. (c) Reinsurance ceded as authorized by section 3634a of this title shall be deducted in determining risk retained. As to surety risks, deduction shall
  also be made of the amount assumed by any licensed or authorized co-surety and the
  fair market value of any security deposited, pledged, or held subject to the surety’s
  consent and for the surety’s protection. (d) As to alien insurers, this section shall relate only to risks and surplus to policyholders
  of the insurer’s United States branch. (e) “Surplus to policyholders” for the purposes of this section, in addition to the insurer’s
  unassigned capital and surplus, shall be deemed to include any voluntary reserves
  that are not required pursuant to law, and shall be determined from the last sworn
  statement of the insurer on file with the Commissioner, or by the last report of examination
  of the insurer, whichever is the more recent at time of assumption of risk. (f) This section shall not apply to life or health insurance, annuities, title insurance,
  insurance of wet marine and transportation risks, workers’ compensation insurance,
  employers’ liability coverages, nor to any policy or type of coverage as to which
  the maximum possible loss to the insurer is not readily ascertainable on issuance
  of the policy. (Added 1985, No. 145 (Adj. Sess.), § 1; amended 1993, No. 12, § 1, eff. April 26, 1993.)