§ 10-11-112 — Net retained liability

Colorado § 10-11-112

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Title Insurance

Text

The net retained liability of any title
insurance company under any single insurance risk, as defined in section 10-11-102
(4) and (7), shall not exceed fifty percent of the net amount remaining after
deducting from the sum of its capital, surplus, unearned premium reserve, and
voluntary reserves the value, if any, assigned in such summation to its title plant, all
as shown in its most recent report on file with the commissioner. The same
limitation shall apply to any secondary risk assumed by means of reinsurance or to
any policy of excess coinsurance; except that, whenever the primary retained
liability of a ceding company equals or exceeds ten percent of the single insurance
risk liability, the net retained or assumed liability limit of this section may be
increased by an additional two hundred fifty thousand dollars, but in no event above
one hundred percent of the net amount remaining after deducting from the sum of
its capital and surplus the value, if any, assigned in such summation to its title
plant, all as shown by its most recent report on file with the commissioner. Nothing
in this section is intended to limit the amount of a single insurance risk, as defined
in section 10-11-102 (7), that may be written by a title insurance company; but it shall
cede to one or more other title reinsurers, on or before the effective date of such
writing, such portion of the said risk as shall be sufficient to bring its net retained
liability thereunder within the limits prescribed in this section; and each such
cession of risk shall be within the limits of this section as applied to the sum of the
capital, surplus, unearned premium reserve, and voluntary reserves, less the value,
if any, assigned in such summation to the title plants of the reinsuring company, as
shown by its most recent report on file with the supervisory agency in the state of
its domicile.

Legislative History

Source: L. 69: p. 524, � 1. C.R.S. 1963: � 72-26-12.