Sec. 38a-73. (Formerly Sec. 38-110). Limitation of risks.
Sec. 38a-73. (Formerly Sec. 38-110). Limitation of risks. No stock insurance
company doing business in this state shall expose itself to loss on any one risk to an
amount exceeding ten per cent of its paid-up capital and surplus; but, in determining
the amount of such risk, no portion thereof which has been reinsured in any insurance
company authorized to do business in this state shall be included. No mutual insurance
company doing business in this state shall expose itself to loss on any one risk to an
amount exceeding ten per cent of its net surplus which limit on any one risk shall, in
no case, exceed the amount authorized by the charter, bylaws or board of directors of
the company; but, in determining the amount of such risk, no portion thereof which has
been reinsured in any insurance company authorized to do business in this state shall
be included.
(1949 Rev., S. 6115; P.A. 90-243, S. 52; P.A. 93-239, S. 18.)
History: P.A. 90-243 deleted the references to "fire" insurance companies; Sec. 38-110 transferred to Sec. 38a-73 in
1991; P.A. 93-239 deleted references limiting applicability to risks "in this state", and eliminated provision including two
and one-half times the amount of the total cash premiums or premium deposits in determining a limitation of risks.