D.C. Mun. Regs. tit. 26, r. 26-A3774
A risk retention group organized as a stock insurer shall not expose itself to any loss on any one risk or hazard, whether located in the District or outside the District, to an amount exceeding ten percent (10%) of the sum of its capital stock and surplus. A risk retention group organized as a mutual or reciprocal insurer shall not expose itself to any loss on any one risk or hazard, whether located in the District or outside the District, to an amount exceeding ten percent (10%) of its surplus.
No portion of any such risk or hazard which shall have been reinsured in a reinsurer authorized to reinsure a risk retention group shall be included in determining limitation of risk.
The Commissioner may waive the ten percent (10%) limitation in Section 3774.1 upon application by the risk retention group for good cause shown. Under no circumstances, however, shall the Commissioner allow a risk retention group's risk limitation to exceed twenty percent (20%) of the sum of the company's capital and surplus if the risk retention group is organized as a stock insurer or twenty percent (20%) of the company's surplus if the risk retention group is organized as a reciprocal or mutual insurer.
D.C. Mun. Regs. tit. 26, r. 26-A3774