1. (A)

   1. (1) Before licensing a mutual insurer, the director or his designee shall require the insurer to be possessed of surplus of not less than:

      1. (a) life: $1,200,000
      2. (b) accident and health: 1,200,000
      3. (c) life, accident, and health: 2,400,000
      4. (d) property: 2,400,000
      5. (e) casualty: 2,400,000
      6. (f) surety: 2,400,000
      7. (g) marine: 2,400,000
      8. (h) title: 1,200,000
      9. (i) multiple lines: 3,000,000

      If licensed to write Surplus which must be

      possessed at time of

      licensing

   2. (2) The director or his designee may require additional initial surplus based on the type or nature of business transacted, and the initial surplus of the insurer must consist of cash or marketable securities which are eligible investments under Section 38-11-40.
2. (B) If the surplus of a licensed mutual insurer is less than the sum of the capital and minimum surplus required to be maintained by a stock insurer licensed to write the same kind or kinds of business, the mutual insurer is considered delinquent, and the director or his designee may begin delinquency proceedings as provided by Chapter 27 of this title.
3. (C) If the surplus of a licensed mutual insurer is less than the minimum capital required to be possessed by a stock insurer licensed to write the same kind or kinds of business, the mutual insurer is delinquent, and the director or his designee shall begin delinquency proceedings.

HISTORY: Former 1976 Code Section 38-9-20 [1947 (45) 322; 1952 Code Section 37-141; 1962 Code Section 37-141] recodified as Section 38-61-10 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-5-620 [1947 (45) 322; 1952 Code Section 37-182; 1957 (50) 402; 1962 Code Section 37-182; 1963 (53) 564; 1971 (57) 311] recodified as Section 38-9-20 by 1987 Act No. 155, Section 1; 1988 Act No. 317, Section 2; 1991 Act No. 13, Section 7; 1993 Act No. 181, Section 535.