§ 27-43-5 - Minimum surplus.
SECTION 27-43-5
§ 27-43-5 Minimum surplus. – (a) No captive insurance company shall be issued a license unless it shallpossess and after this maintain free surplus of:
(i) In the case of a subsidiary captive insurance company,not less than one hundred fifty thousand dollars ($150,000);
(ii) In the case of an association captive insurance companyincorporated as a stock insurance company, not less than three hundred fiftythousand dollars ($350,000);
(iii) In the case of an industrial insured captive insurancecompany incorporated as a stock insurance company, not less than three hundredthousand dollars ($300,000);
(iv) In the case of an association captive insurance companyincorporated as a mutual insurance company, not less than seven hundred fiftythousand dollars ($750,000); and
(v) In the case of an industrial insured captive insurancecompany incorporated as a mutual insurance company, not less than five hundredthousand dollars ($500,000).
(2) The surplus may be in the form of cash or an irrevocableletter of credit issued by a bank chartered by the state of Rhode Island or amember bank of the Federal Reserve System and approved by the commissioner.
(b) The commissioner may prescribe additional surplus basedupon the type, volume, and nature of insurance business transacted, whichsurplus may be in the form of a irrevocable letter of credit issued by a bankchartered by the state of Rhode Island, or a member bank of the Federal ReserveSystem.
(c) No captive insurance company may pay a dividend out of,or other distribution with respect to, surplus, in excess of the limitationsset forth in § 27-43-12, without the prior approval of the commissioner.Approval of an ongoing plan for the payment of dividends or other distributionsshall be conditioned upon the retention, at the time of each payment, of thecapital or surplus in excess of amounts specified by, or determined inaccordance with formulas approved by, the commissioner.