§ 4219. Limitation on accumulation of surplus of life insurance\ncompanies.
(a)(1) Any domestic mutual life insurance company may\nmaintain a surplus, above all of its reserves and liabilities required\nor specifically permitted by this chapter, not exceeding the greatest of\n(A) eight hundred fifty thousand dollars, or (B) ten percent of its\npolicy reserves and policy liabilities, or (C) ten percent of its policy\nreserves and policy liabilities plus (i) the product of three and its\nauthorized control level RBC as determined in accordance with section\none thousand three hundred twenty-two of this chapter minus (ii) the\nasset valuation reserve as reported in its annual statement, or (D) the\nminimum amount of capital and surplus required by law of another state\nin which the company
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§ 4219. Limitation on accumulation of surplus of life insurance\ncompanies. (a) (1) Any domestic mutual life insurance company may\nmaintain a surplus, above all of its reserves and liabilities required\nor specifically permitted by this chapter, not exceeding the greatest of\n(A) eight hundred fifty thousand dollars, or (B) ten percent of its\npolicy reserves and policy liabilities, or (C) ten percent of its policy\nreserves and policy liabilities plus (i) the product of three and its\nauthorized control level RBC as determined in accordance with section\none thousand three hundred twenty-two of this chapter minus (ii) the\nasset valuation reserve as reported in its annual statement, or (D) the\nminimum amount of capital and surplus required by law of another state\nin which the company is authorized to do business.\n (2) Any domestic stock life insurance company issuing participating\npolicies only or both participating and non-participating policies or\ncontracts in accordance with subsection (f) of section four thousand two\nhundred thirty-one of this article, may maintain a participating\npolicyholders' surplus, above all of its reserves and liabilities\narising out of participating policies, required or specifically\npermitted by the provisions of this chapter, not exceeding the greatest\nof (A) two hundred fifty thousand dollars, or (B) ten percent of such\npolicy reserves and such policy liabilities, or (C) ten percent of such\npolicy reserves and policy liabilities plus the amount derived by\nprorating, based upon the ratio of participating assets to admitted\nassets, (i) the product of three and its authorized control level RBC as\ndetermined in accordance with section one thousand three hundred\ntwenty-two of this chapter minus (ii) the asset valuation reserve as\nreported in its annual statement.\n (3) In this section, "policy reserves and policy liabilities" includes\nreserves and liabilities on outstanding life insurance policies,\naccident and health insurance policies and annuity contracts, contracts\nsupplemental thereto or in connection therewith or provisions included\ntherein insuring against disability or against death by accident and\nincluding liabilities required under optional modes of settlement and\nfor dividends left on deposit, after deducting the net value of its\nrisks reinsured by other solvent assuming insurers. Policy reserves and\nliabilities shall also include the reserves and liabilities of the\ndomestic life insurance company and the policy reserves and liabilities\nof any and all wholly-owned subsidiary life insurance companies of the\ndomestic life insurance company, to the extent that the surpluses of\nsuch subsidiary life insurance companies are included in the surplus of\nthe domestic life insurance company for purposes of determining the\nlimit pursuant to this section.\n (4) In the case of a mutual life insurance company that is reorganized\ninto a stock life insurance company under section seven thousand three\nhundred twelve of this chapter, the limitation contained in paragraph\none of this subsection shall not affect that part of the existing\nsurplus of such reorganized company that is allocated to participating\npolicies and contracts of the mutual life insurance company which is in\nexcess of such limitation on the effective date of the reorganization,\nprovided such excess, in addition to any further accretions occurring in\nthe normal course of business, shall be equitably distributed to these\nparticipating policyholders and contractholders over a period not to\nexceed ten years.\n (b) The superintendent may, for good cause shown, by order, permit any\nsuch company to maintain a surplus in excess of the maximum prescribed\nby subsection (a) hereof, for a specified period, not exceeding one year\nunder any one order. The superintendent shall state in such order his\nreasons therefor and shall cause a statement of such order and such\nreasons to be published in his next annual report to the legislature.\n (c) This section shall not apply to any stock life insurance company\ndoing exclusively a non-participating business.\n