Montana § 33-4-502 Limit Of Risk -- Retention Of Liability

Montana Statutes

§ 33-4-502 — Limit Of Risk -- Retention Of Liability

Montana·Title 33 INSURANCE AND INSURANCE COMPANIES·Ch. 4 FARM MUTUAL INSURERS·Part 5 Insurance Operations

33-4-502 . Limit of risk -- retention of liability.

(1)Except as provided in subsection (3), the maximum amount of insurance that an insurer may retain on a single risk, after deduction of applicable reinsurance, may not exceed the greater of 10% of the admitted assets of the insurer or $50,000.

(2)For the purposes of this section, a "single risk" as to insurance against fire and hazards other than windstorm, earthquake, or other catastrophic perils includes all properties insured by the same insurer that are reasonably susceptible to loss or damage from the same fire or the same occurrence of another hazard insured against.

(3)A farm mutual insurer:

(a)that insures any portion of a liability risk shall maintain a surplus of at least $50,000;

(b)that retains any portion of a liability

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33-4-502 . Limit of risk -- retention of liability. (1) Except as provided in subsection (3), the maximum amount of insurance that an insurer may retain on a single risk, after deduction of applicable reinsurance, may not exceed the greater of 10% of the admitted assets of the insurer or $50,000.
(2) For the purposes of this section, a "single risk" as to insurance against fire and hazards other than windstorm, earthquake, or other catastrophic perils includes all properties insured by the same insurer that are reasonably susceptible to loss or damage from the same fire or the same occurrence of another hazard insured against.
(3) A farm mutual insurer:
(a) that insures any portion of a liability risk shall maintain a surplus of at least $50,000;
(b) that retains any portion of a liability risk shall obtain reinsurance on that liability insurance with an insurer that meets the criteria established in 33-4-503 . A farm mutual insurer's retention on a single liability risk may not exceed the greater of 3% of admitted assets or $50,000.
(c) may not retain liability risk or risk resulting from insuring growing crops against loss or damage from hail or other hazards greater than the proportional share of each limit of liability in the following schedule:

Montana § 33-4-502 (Limit Of Risk -- Retention Of Liability) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

En. Sec. 471, Ch. 286, L. 1959; amd. Sec. 1, Ch. 259, L. 1967; amd. Sec. 1, Ch. 94, L. 1975; R.C.M. 1947, 40-4804; amd. Sec. 1, Ch. 319, L. 1979; amd. Sec. 1, Ch. 132, L. 1981; amd. Sec. 3, Ch. 28, L. 1987; amd. Sec. 3, Ch. 158, L. 1997; amd. Sec. 6, Ch. 271, L. 2009; amd. Sec. 3, Ch. 208, L. 2013.