§ 23-72-104 - Minimum requirements for new insurers.

23-72-104. Minimum requirements for new insurers.

(a) No insurer shall transact mutual assessment life or disability insurance in this state unless it lawfully had authority to transact the insurance on January 1, 1960, and provided further that from and after January 1, 1968, the insurer shall be required to:

(1) Maintain reserves on all life insurance policies, annuity and endowment contracts, and disability insurance policies issued on or after January 1, 1968, in the following manner:

(A) Reserves on all life insurance policies and annuity and endowment contracts shall be established and maintained in accordance with the provisions of the standard valuation law, 23-84-101 et seq.; and

(B) Reserves on all accident and health insurance policies shall be established and maintained in accordance with the provisions of 23-63-601 et seq.; and

(2) Insert in all life insurance policies and annuity and endowment contracts issued on and after January 1, 1968, a provision for nonforfeiture benefits in accordance with the standard nonforfeiture law, 23-81-201 et seq.

(b) No insurer shall continue to be authorized to transact mutual assessment life or disability insurance in this state unless it is otherwise entitled to such authority and has:

(1) At least two thousand (2,000) members regularly paying their assessments; and

(2) Surplus funds of at least ten thousand dollars ($10,000).

(c) No domestic insurer shall hereafter be organized to transact life or disability insurance on the mutual assessment plan.