Maximum Single Risk

The maximum single risk which may be assumed by any insurer after deduction of any reinsurance taking effect simultaneously with the policy, shall be ten percent (10%) of the paid in capital and surplus of such insurer; provided, however, that a corporate insurer may assume any net single risk in excess of ten percent (10%) of its capital and surplus if it deposits with the Commissioner, prior to the assumption of said risk, a collateral agreement and collateral security, both of which shall be subject to approval by the Commissioner, in an amount not less than that proportion in excess of the foregoing limitation. COL 1/26/2024 CH. 15 BUSINESS OF INSURANCE