A ceding insurer shall remain jointly and severally liable with an unauthorized assuming insurer on ceded contracts or policies for which assumption certificates have been issued covering risks resident in this state until such time as:

1. A. the assuming insurer obtains a certificate of authority to transact the applicable kind of insurance in this state; or

2. B. the assuming insurer deposits with the superintendent a special deposit in an amount equal to the greater of:

   1. (1) one hundred thousand dollars ($100,000); or
   2. (2) twenty thousand dollars ($20,000) plus the statutory reserves required of an authorized insurer for the contracts assumed.

History: 1978 Comp., § 59A-8-7.1, enacted by Laws 1993, ch. 320, § 23.