A. In the case of domestic applicants being organized for the purpose of assuming the risk of loss under contracts of insurance, the quantum of proof customarily needed pursuant to Insurance Code Section 839 must be sufficient to satisfy the commissioner of at least the following with respect to applicant:

1. 1. That it has a practicable, workable organization and plan of operation with honest, experienced, competent persons in charge;
2. 2. That it has actuarial sound policies to sell at merchantable rates;
3. 3. That it will employ lawful sales methods;
4. 4. That its underwriting and rating will be lawful and practicable;
5. 5. That its reinsurance arrangements are provident and lawful;
6. 6. That it has access to or can develop sufficient premium income to survive;
7. 7. That it will promptly and fairly adjust claims by its policyholders and will fully pay such claims in accordance with law and the terms of the policies;
8. 8. That its investments will be lawfully made and skillfully managed;
9. 9. That its operations and business ought to produce a fair profit within a reasonable period; and
10. 10. That its plan of financing and stock selling will produce enough funds so that applicant can and will maintain statutory financial requirements and avoid a hazardous condition until earned premium income plus investment income exceeds all expenditures. (Sections 717, 839, 843)