(a)If newly organized, a domestic mutual insurer may be
authorized to transact any one (1) of the kinds of insurance
listed in the schedule in subsection (b) of this section.
(b)When applying for a certificate of authority, the
insurer shall:
(i)Be otherwise qualified therefor under this code;
(ii)Have received and accepted bona fide
applications as to substantial insurable subjects for insurance
coverage of a substantial character of the kind of insurance
proposed to be transacted;
(iii)Have collected in cash the full premium
therefor at a rate not less than that usually charged by other
insurers for comparable coverages; and
(iv)Have surplus funds on hand and deposited as of
the date the insurance coverages become effective; or
(v)Instead of the applications, premiums and
surplus,
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(a) If newly organized, a domestic mutual insurer may be
authorized to transact any one (1) of the kinds of insurance
listed in the schedule in subsection (b) of this section.
(b) When applying for a certificate of authority, the
insurer shall:
(i) Be otherwise qualified therefor under this code;
(ii) Have received and accepted bona fide
applications as to substantial insurable subjects for insurance
coverage of a substantial character of the kind of insurance
proposed to be transacted;
(iii) Have collected in cash the full premium
therefor at a rate not less than that usually charged by other
insurers for comparable coverages; and
(iv) Have surplus funds on hand and deposited as of
the date the insurance coverages become effective; or
(v) Instead of the applications, premiums and
surplus, deposit and thereafter maintain surplus in accordance
with that part of the following schedule which applies to the
one (1) kind of insurance the insurer proposes to transact:
(a) (b) (c) (d) (e) (f)
(g) (h)
Max. Deposit Deposit
Min. Min. Min. Amt. of
Min. of
Kind of No. No. Minimum Amt. Ins.
ea. Surplus Surplus
Insur-of Apps. Subjects Premium Ins. ea. Subject
Funds in Lieu
Ance Accepted Covered Collected Subject (v)
(vi) (vi)
Life (i) 200 200 Annual $ 1,000 $
2,500 $ 50,000 $ 150,000
Disability 200 200 Quarterly $ 10 $
25 $ 50,000 $ 150,000
(ii) (Weekly
(Weekly
Indem.) Indem.)
Property 100 250 Annual $ 1,000 $
3,000 $ 50,000 $ 200,000
(iii)
Casualty 150 200 Annual $ 1,000 $
10,000 $ 100,000 $ 200,000
(iv)
excluding
surety &
worker’s
compen-
sation
Casualty 200 500 Quarterly $ 1,000 $
10,000 $ 150,000 $ 250,000
with
worker’s
compen-
sation
(c) In addition to surplus deposited and thereafter to be
maintained as shown in columns (g) or (h) of the schedule
provided in paragraph (b)(v) of this section, the insurer when
first authorized shall have on hand surplus funds, which it can
thereafter expend in the conduct of its business, in an amount
not less than fifty thousand dollars ($50,000.00) or fifty
percent (50%) of the deposited surplus required of it under the
schedule, whichever is larger.
(d) The following provisions are applicable to the
schedule provided in paragraph (b)(v) of this section and
provisions as indicated by like roman numerals appearing in that
schedule:
(i) No group insurance or term policies for terms of
less than ten (10) years shall be included;
(ii) No group, blanket or family plans of insurance
shall be included. Instead of weekly indemnity a like premium
value in medical, surgical and hospital benefits may be
provided. Any accidental death or dismemberment benefit provided
shall not exceed two thousand five hundred dollars ($2,500.00);
(iii) Only insurance of the owner's interest in real
property may be included;
(iv) Casualty insurance shall include insurance of
legal liability for bodily injury and property damage, to which
the maximum and minimum insured amounts apply;
(v) The maximums provided for in column (f) of the
schedule are net of applicable reinsurance;
(vi) The deposit of surplus in the amount specified
in columns (g) and (h) of the schedule shall thereafter be
maintained unimpaired. The deposit is subject to chapter 8 of
this code.