§ 27-2-5 - Minimum capital and surplus requirements – Maximum amount of single risk.
SECTION 27-2-5
§ 27-2-5 Minimum capital and surplusrequirements – Maximum amount of single risk. – No insurance company not incorporated under the authority of this state shallmake any contract of insurance with any person in this state unless the capitalstock of the company is at least equal to one million dollars ($1,000,000) andthe gross paid in and contributed surplus of the company is at least equal totwo million dollars ($2,000,000) or, if a mutual company, its net assets overall liabilities amount to not less than three million dollars ($3,000,000), norunless the company, if other than a life insurance company, shall berestricted, by its charter or otherwise, so that it cannot lawfully incur inany one risk a greater hazard than one-tenth ( 1/10) part of its capital andsurplus if a stock company or of its net assets if a mutual company; provided,that no fire, marine, or fire and marine insurance company of any foreigncountry shall make any contract of insurance with any person in this stateunless the company has two million dollars ($2,000,000) paid-in capital stockand four million dollars ($4,000,000) surplus, or if a foreign mutual companyits net assets over all liabilities amount to not less than six million dollars($6,000,000) and shall have made a deposit with the insurance commissioner ofthis state, or with the proper officer of some other state of the UnitedStates, of not less than two million dollars ($2,000,000) in securities whichshall be at all times at or above par and in trust for the benefit of itspolicyholders in the United States, or if a mono-line business company asdefined in this title, has a combined capital and surplus of two milliondollars ($2,000,000). Nothing contained in this section shall be construed toapply to foreign insurance companies licensed prior to May 13, 1977.