1. (a) No captive insurance company shall be issued a certificate of authority unless it shall possess and thereafter maintain free surplus of:

   1. (1) In the case of a pure captive insurance company, not less than $150,000;
   2. (2) in the case of an industrial insured captive insurance company incorporated as a stock insurer, not less than $300,000; and
   3. (3) in the case of an industrial insured captive insurance company incorporated as a mutual insurer, not less than $500,000.
2. (b) Such surplus may be in the form of cash or an irrevocable letter of credit issued by a bank chartered by the state of Kansas or the United States comptroller of currency, domiciled in Kansas, and approved by the commissioner.

L. 1988, ch. 156, § 5; July 1.