Montana Code Annotated 1997

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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 shall retain on a single risk, after deduction of applicable reinsurance, may not exceed 10% of the admitted assets of the insurer or $50,000, whichever is the larger amount.
     (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 authorized to do business in this state, and the farm mutual insurer's maximum aggregate liability for incurred losses on liability coverage retained for any calendar year or contract year may not exceed the smaller of $200,000 or 20% of the farm mutual insurer's surplus as of December 31 of the preceding year; and
     (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:
     
     Surplus as of the     Proportional Share of Each
     Preceding December 31:     Limit of Liability Retained:
     $1,000,000 or greater     15%
     $800,000 to $999,999     12%
     $600,000 to $799,999     9%
     $400,000 to $599,999     6%
     $200,000 to $399,999     3%
     Under $200,000     0
     

     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.

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