20-211. Surplus required
A. In addition to the minimum required capital stock, if a stock insurer, or
minimum required basic surplus, if mutual or reciprocal insurers, as required by sections
20-210 and 20-212 as to all stock insurers and foreign and alien mutual and reciprocal
insurers, by sections 20-768 and 20-212 as to domestic reciprocal insurers, and section
20-711, subsection B and section 20-212 as to domestic mutual insurers, except as stated
in subsection C of this section, any foreign or alien insurer, any title insurer, and any
domestic insurer shall possess at the time of original authorization in this state
initial free surplus as stated in section 20-210, and shall maintain free surplus funds
in an amount of not less than one-half such initial free surplus. No other insurer shall
be so initially authorized in this state unless it then possesses surplus of not less
than initial free surplus as stated in section 20-210, in addition to the minimum
required capital stock, if a stock insurer, or minimum required basic surplus, if mutual
or reciprocal insurers, otherwise required.
B. In addition to the minimum required capital stock if the insurer is a stock
insurer or in addition to the minimum required basic surplus if the insurer is a mutual
or reciprocal insurer under this article and chapter 4, article 1 of this title, a
domestic, foreign or alien insurer shall possess and maintain any additional free surplus
that the director may require based on the type, volume or nature of its business as a
necessary condition to avoid rendering its transaction of insurance hazardous to its
policyholders or the people of this state. The director shall adopt rules to implement
the provisions of this subsection.
C. Subsection A of this section shall not apply to a domestic mutual insurer which
qualifies upon the basis of applications for insurance as provided in section 20-711, nor
to reinsurers which qualify pursuant to chapter 4, article 10 of this title and which do
not within such five year period transact any kind of insurance in addition to that for
which initially authorized.
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