1. A. The Insurance Commissioner may not issue a license to a captive reinsurance company unless the company possesses and maintains capital or free surplus of not less than the greater of Three Hundred Million Dollars ($300,000,000.00) or ten percent (10%) of reserves. The surplus may be in the form of cash or securities.
2. B. The Insurance Commissioner may prescribe additional capital or surplus based upon the type, volume, and nature of the insurance business transacted.
3. C. A captive reinsurance company may not pay a dividend out of, or other distribution with respect to, capital or surplus in excess of the limitations, without the prior approval of the Insurance Commissioner. Approval of an ongoing plan for the payment of dividends or other distributions must be conditioned upon the retention, at the time of each payment, of capital or surplus in excess of amounts specified by, or determined in accordance with formulas approved by, the Insurance Commissioner.

Added by Laws 2004, HB 2141, c. 334, § 14, emerg. eff. May 25, 2004.