20-213. Deposit requirements
The director shall not issue a certificate of authority to any insurer unless it has
deposited in trust with the state treasurer through the director's office cash or
securities eligible for the investment of capital funds of domestic insurers under this
title in an amount not less than the minimum required capital stock, if a stock insurer,
or minimum required basic surplus, if a mutual or reciprocal insurer, required pursuant
to this article to be maintained for authority to transact the kinds of insurance to be
transacted, except:
1. As to life and disability carriers there shall be maintained with the state
treasurer or a trustee approved by the director, a deposit in cash, surety bond or
securities as described in sections 20-537 through 20-548 and sections 20-551 through
20-556, in an amount equal to the greatest of:
(a) Minimum required capital stock or minimum required basic surplus pursuant to
section 20-210.
(b) Two-thirds of the aggregate reserves as computed under section 20-510.
(c) Twenty-five per cent of the earned premium of the prior year.
2. As to title insurers, the deposit shall be in such amount as is required by
article 9 of chapter 6 of this title.
3. As to foreign insurers, in lieu of such deposit or part thereof in this state,
the director shall accept the current certificate in proper form of the public official
having supervision over insurers in any other state to the effect that a like deposit or
part thereof by such insurer is being maintained in public custody in such state in trust
for the purpose, among other reasonable purposes of protection of policyholders in this
state.
4. As to alien insurers, in lieu of such deposit or part thereof in this state, the
director shall accept evidence satisfactory to him that the insurer maintains within the
United States by way of deposits with public depositaries, or in trust institutions
within the United States approved by the director, assets available for discharge of its
United States insurance obligations which assets shall be in amount not less than the
outstanding liabilities of the insurer arising out of its insurance transactions in the
United States, together with, in the case of title insurers, the sum required by article
9 of chapter 6 of this title, and, in the case of all other insurers, together with the
larger of the following sums:
(a) The largest deposit required by this title to be made in this state by any type
of domestic insurer transacting like kinds of insurance, or
(b) Three hundred thousand dollars.
5. No deposit requirement for any insurer provided by this section shall exceed
five hundred thousand dollars.
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