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This entry was published on 2014-09-22
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SECTION 4204
Financial requirements for the organization of stock accident and health insurance companies and stock legal services insurance companies
Insurance (ISC) CHAPTER 28, ARTICLE 42
§ 4204. Financial requirements for the organization of stock accident
and health insurance companies and stock legal services insurance
companies. (a) (1) A stock company may be organized in the manner
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
only the kind of insurance business specified in item (i) of paragraph
three of subsection (a) of section one thousand one hundred thirteen of
this chapter, with a paid-in capital of not less than one hundred
thousand dollars, and a paid-in surplus at least equal to fifty percent
of its capital. Every such company shall at all times thereafter
maintain a minimum capital of one hundred thousand dollars.

(2) Notwithstanding the foregoing, any such stock company initially
licensed on or after July first, nineteen hundred eighty-two shall have
a paid-in capital of not less than two hundred thousand dollars and a
paid-in surplus at least equal to fifty percent of its capital and shall
at all times maintain a minimum capital of at least two hundred thousand
dollars.

(b) (1) Any company organized under the provisions of subsection (a)
of this section may be licensed to do the kind of insurance business
specified in item (ii) of paragraph three, paragraph twenty-nine and
paragraph thirty-one of subsection (a) of section one thousand one
hundred thirteen of this chapter, if it has a paid-in capital of not
less than one hundred fifty thousand dollars, and a paid-in initial
surplus at least equal to fifty percent of its capital. Every such
company shall at all times maintain a minimum capital of one hundred
fifty thousand dollars.

(2) Notwithstanding the foregoing provisions of this subsection, any
such company initially licensed on or after July first, nineteen hundred
eighty-two shall have a paid-in capital of not less than three hundred
thousand dollars and a paid-in surplus at least equal to fifty percent
of its capital and shall at all times maintain a minimum capital of at
least three hundred thousand dollars.

(c) A stock company may be organized to do only the kind of insurance
specified in paragraph twenty-nine of subsection (a) of section one
thousand one hundred thirteen of this chapter if it complies with the
financial requirements of paragraph one of subsection (a) of this
section.