§ 27-5-16 - Resolution to establish surplus and reserve funds – Certification of funds.
SECTION 27-5-16
§ 27-5-16 Resolution to establish surplusand reserve funds – Certification of funds. – Any state fire insurance company desiring to create guaranty surplus andspecial reserve funds may do so upon the adoption of a resolution by its boardof directors, at a regular meeting of its board of directors, to that effect,and filing with the insurance commissioner a copy declaring the intention ofthe company to create those funds and to do business under the provisions ofthis chapter. As soon after the filing of a copy of the resolution as isconvenient, the insurance commissioner shall make, or cause to be made, anexamination of the company, and the commissioner shall make a certificate ofthe result which shall particularly set forth the amount of surplus funds heldby the company at the date of the examination, the whole or any part of whichunder the provisions of this chapter may be equally divided between and setapart to constitute guaranty surplus and special reserve funds, whichcertificate shall be recorded in the office of the insurance commissioner.