40-1605. Maintenance of unearned premiums and reserves; surplus funds; conditions.
40-1605
40-1605. Maintenance of unearned premiums andreserves; surplus funds;conditions.(a) Atall times, each reciprocal shall maintain the same unearned premium and loss orclaim reserves, in cash or securities authorized by the laws of the statein which the reciprocalis domiciled, as required for domestic stock and mutual companies writing thesame classes of insurance.
(b) No reciprocal shall be licensed to transact the business of insurance inthis state unless such reciprocal shall have and maintain a surplus equalto the capital and surplus required of a domestic stock insurance companytransacting the same kinds of insurance.
(c) Each reciprocal shall have lawful securities on deposit, for theprotection of all subscribers or creditors, or both, of thereciprocal, with the department of insurance of this or any other statein the United States in an amount equal to the minimum capital stock requiredof a domestic stock insurance company transacting the same kinds ofinsurance.
History: L. 1927, ch. 231, 40-1605; L. 1955, ch. 243, § 1; L.1965, ch. 300, § 7; L. 1969, ch. 237, § 10; L. 1979, ch. 144, §1; L. 1984, ch. 169, § 10;L. 2000, ch. 170, § 21; July 1.