§ 26.1-20-04 — Limitation on risks

1. Except as provided in subsection 2, a title insurance company may issue a title
insurance policy on property located in this state involving a potential policy liability up
to ninety percent of the sum of the company's surplus as regards policyholders and
statutory premium reserves as stated in the most recent annual statement of the
company.
2. A title insurance company may exceed the limit established in subsection 1 if the
excess liability is reinsured in due course with an authorized title insurance company
or in compliance with subsection 3 or 4.
3. Notwithstanding contrary provisions of this section, a title insurance company may
acquire reinsurance on an individual policy or facultative basis from a title insurance
company not authorized to engage in the business of title insurance in this state if the
title insurance company from which the reinsurance is acquired:
a. Has a combined capital and surplus of at least twenty million dollars as stated in
the company's most recent annual statement preceding the acceptance of
reinsurance; and
b. Is domiciled in another state and is authorized to engage in the business of title
insurance in one or more states.
4. Notwithstanding contrary provisions in this section, a title insurance company may
obtain reinsurance by a reinsurance treaty or other reinsurance agreement from an
assuming insurer with a financial strength rating of B+ or better from the A.M. Best

Company, Inc., or with an alternative rating the commissioner may approve which the
commissioner determines is an equivalent rating by another recognized rating
organization.