§ 26-44-108 — Adequacy of surplus

(a) For purposes of this act, in determining whether an
insurer's surplus as regards policyholders is reasonable in
relation to the insurer's outstanding liabilities and adequate
to its financial needs, the following factors, among others,
shall be considered:
(i) The size of the insurer as measured by its
assets, capital and surplus, reserves, premium writings,
insurance in force and other appropriate criteria;
(ii) The extent to which the insurer's business is
diversified among the several lines of insurance;
(iii) The number and size of risks insured in each
line of business;
(iv) The extent of the geographical dispersion of the
insurer's insured risks;
(v) The nature and extent of the insurer's
reinsurance program;
(vi) The quality, diversification and liquidity of
the insurer's investment portfolio;
(vii) The recent past and projected future trend in
the size of the insurer's investment portfolio;
(viii) The surplus as regards policyholders
maintained by other comparable insurers;
(ix) The adequacy of the insurer's reserves; and
(x) The quality and liquidity of investments in
affiliates.
(b) The commissioner may treat any investment as a
disallowed asset for purposes of determining the adequacy of
surplus as regards policyholders whenever he deems that
treatment necessary.