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This entry was published on 2014-09-22
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SECTION 4202
Capital and surplus requirements of life insurance companies
Insurance (ISC) CHAPTER 28, ARTICLE 42
§ 4202. Capital and surplus requirements of life insurance companies.
(a) (1) A stock company may be organized as prescribed in section one
thousand two hundred one and subsection (e) of section one thousand one
hundred two of this chapter and licensed to do the business of life
insurance as specified in paragraph one of subsection (a) of section one
thousand one hundred thirteen of this chapter with a paid-in capital of
at least two million dollars and a paid-in initial surplus at least
equal to the greater of four million dollars or two hundred percent of
its capital, and it may in addition do any one or more of the kinds of
insurance business specified in paragraphs two, three, twenty-nine and
thirty-one of subsection (a) of section one thousand one hundred
thirteen of this chapter, without having additional capital or surplus.

(2) Every such company shall at all times maintain a minimum capital
of two million dollars, except that every such company

(A) if organized prior to April fourth, nineteen hundred sixty-two
shall at all times maintain a minimum capital of at least three hundred
thousand dollars and a surplus at least equal to fifty percent of such
capital; and

(B) if organized on or after April fourth, nineteen hundred sixty-two
and prior to September first, nineteen hundred sixty-six shall at all
times maintain a minimum capital of at least five hundred thousand
dollars and a surplus at least equal to fifty percent of such capital;
and

(C) if organized on or after September first, nineteen hundred
sixty-six and prior to September first, nineteen hundred seventy-nine
shall at all times maintain a minimum capital of at least one million
dollars and a surplus at least equal to fifty percent of such capital.

(b) (1) The superintendent may permit the organization, in conformity
with section one thousand two hundred one and subsection (e) of section
one thousand one hundred two of this chapter, of a stock company to do
on a restricted plan any one or more of the kinds of insurance business
specified in paragraphs one, two and three of subsection (a) of section
one thousand one hundred thirteen of this chapter, with a minimum
paid-in capital and a minimum paid-in surplus in an amount prescribed by
him, but not less than a paid-in capital of two hundred thousand dollars
and a paid-in surplus at least equal to one hundred thousand dollars
provided the superintendent, after investigation, finds that the
restricted plan is sound, economical and practical and that there is a
public demand for such insurance or annuity contracts.

(2) Every such company shall at all times maintain such prescribed
minimum capital except that every such company organized prior to April
fourth, nineteen hundred sixty-two shall at all times maintain a minimum
paid-in capital and a minimum paid-in surplus in an amount prescribed by
the superintendent, but not less than a paid-in capital of one hundred
thousand dollars and a paid-in surplus at least equal to fifty thousand
dollars.