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This entry was published on 2019-01-11
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SECTION 4208
Financial and additional requirements for the organization of mutual life, accident and health, and legal services insurance companies
Insurance (ISC) CHAPTER 28, ARTICLE 42
§ 4208. Financial and additional requirements for the organization of
mutual life, accident and health, and legal services insurance
companies. (a) (1) A mutual insurance company may be incorporated and
licensed exclusively to do one or more of the kinds of insurance
business specified in paragraphs one, two, three, twenty-nine and
thirty-one of subsection (a) of section one thousand one hundred
thirteen of this chapter, upon compliance with the applicable
requirements of section one thousand two hundred one and subsection (e)
of section one thousand one hundred two of this chapter and subsection
(b) of this section.

(2) In this section:

(A) "Initial surplus" means the paid-in initial surplus required
pursuant to paragraph nine of subsection (a) of section one thousand two
hundred one and paragraph one of subsection (e) of section one thousand
one hundred two of this chapter.

(B) "Minimum surplus" means the amount of surplus which such company
shall, after being licensed to do business, at all times maintain
unimpaired.

(C) "Applications" means individual applications for policies of life
insurance, except that in the case of volunteer firefighters, it shall
also mean applications for enrollment for coverage to be issued under
group life insurance policies applied for by not less than twenty-five
associations or organizations of volunteer firefighters in accordance
with the provisions of paragraph seven of subsection (b) of section four
thousand two hundred sixteen of this article.

(b) (1) If organized to do only the kind of insurance business
specified in paragraph one of subsection (a) of section one thousand one
hundred thirteen of this chapter, such company shall:

(A) have not less than one thousand bona fide applications for life
insurance in an amount not less than one thousand dollars each;

(B) have received from each such applicant in cash the full amount of
one annual premium on the policy applied for, which premiums in the
aggregate at least equal twenty-five thousand dollars;

(C) have an initial surplus of one hundred fifty thousand dollars in
cash; and

(D) have a minimum surplus of one hundred thousand dollars.

(2) If organized to do only the kind of business specified in item (i)
of paragraph three of subsection (a) of section one thousand one hundred
thirteen of this chapter, such company shall:

(A) have not less than five hundred bona fide applications for such
insurance;

(B) have received from each such applicant in cash the full amount of
one annual premium on the policy applied for, which premiums in the
aggregate at least equal twenty thousand dollars;

(C) have an initial surplus of one hundred fifty thousand dollars in
cash; and

(D) have a minimum surplus of one hundred thousand dollars, except
that every such company initially licensed on or after July first,
nineteen hundred eighty-two shall have an initial surplus and a minimum
surplus in an amount which is at least equal to two hundred percent of
that required of a like company licensed prior to July first, nineteen
hundred eighty-two.

(3) If organized to do the kinds of insurance business specified in
paragraph one and in item (i) of paragraph three of subsection (a) of
section one thousand one hundred thirteen of this chapter, such company
shall comply with both paragraph one and paragraph two of this
subsection.

(4) To be organized to do the kind of insurance business specified in
paragraph two of subsection (a) of section one thousand one hundred
thirteen of this chapter, such company shall meet the organizational
requirements of paragraph one hereof and shall have an initial surplus
and a minimum surplus, each in an amount at least fifty thousand dollars
in excess of the respective amounts otherwise required by paragraph one
hereof.

(5) To be organized to do the kind of insurance business specified in
item (ii) of paragraph three or paragraph twenty-nine of subsection (a)
of section one thousand one hundred thirteen of this chapter, such
company shall meet the organizational requirements of one or more of
paragraphs one through four hereof and shall have an initial surplus and
a minimum surplus, each in an amount at least fifty thousand dollars in
excess of the highest applicable respective amount required by such
paragraph or paragraphs, except that any such company initially licensed
on or after July first, nineteen hundred eighty-two shall have an
initial surplus and a minimum surplus, each in an amount at least one
hundred thousand dollars in excess of the highest applicable respective
amount required by such paragraph or paragraphs.