§ 26.1-05-04 — Capital stock and surplus requirements of domestic stock company - Exceptions

Exceptions.
A stock insurance company may not be incorporated under this chapter unless it has an
authorized capital stock of at least five hundred thousand dollars and a surplus of at least five
hundred thousand dollars. A domestic stock insurance company may not issue any insurance
policy until at least fifty percent of the required capital stock, and all of the required surplus, has
been paid in, the residue of capital stock to be paid in within twelve months from the time of
filing the articles of incorporation. The commissioner, for good cause shown, may extend the
time of payment of the residue for the further period of one year. If the minimum capital stock
and surplus requirements at the time a stock insurance company incorporated under this
chapter were less than the minimum requirements provided by this section, the stock insurance
company shall increase its authorized and paid-in capital stock and surplus to the minimum
requirements under this section according to the following schedule:
1. Capital of two hundred fifty thousand dollars and surplus of two hundred fifty thousand
dollars by December 31, 1994.
2. Capital of three hundred seventy-five thousand dollars and surplus of three hundred
seventy-five thousand dollars by December 31, 1995.
3. Capital of five hundred thousand dollars and surplus of five hundred thousand dollars
by December 31, 1996.

Except as otherwise provided in this section, the total value of paid-in capital stock and surplus
of a stock insurance company organized under the laws of this state may not at any time be
depleted to an amount totaling less than one million dollars.