Premium note plan, amount of net liability
306(1)If not inconsistent with the provisions of its charter or by-laws an insurer empowered to write mutual insurance for fire, livestock or theft insurance or such other classes of insurance as are approved by the Superintendent may effect such insurance on the premium note plan, for a period not exceeding three years, on farm and other non-hazardous property.
306(2)No insurer shall undertake
(a)
any risk on or in respect of any one property or risk subject to the hazard of a single fire or other single peril under a contract of fire insurance,
(b)
any risk under a contract of livestock or theft insurance, or
(c)
any risk under a contract of any other class of insurance approved by the Superintendent,
for an amount greater than three thousand dollars unless such risk is reinsured to an amount sufficient to reduce the net liability of the insurer to the amount of three thousand dollars.
306(3)The Superintendent may permit an insurer to increase the amount of the net liability of an insurer on or in respect of risks
(a)
subject to the hazard of a single fire or other single peril under a contract of fire insurance,
(b)
under a contract of livestock insurance,
(c)
under a contract of theft insurance, or
(d)
under a contract of any other class of insurance approved by the Superintendent.
306(4)A risk subject to the hazard of a single fire or any other single peril shall be deemed to include the total amount at risk on buildings or their contents where such buildings are distant less than thirty-five feet from each other.
1968, c.6, s.303; 1973, c.52, s.3; 1978, c.30, s.6; 1985, c.52, s.3; 1986, c.47, s.3; 1987, c.6, s.45; 2013, c.31, s.20