Section 26-24-109 - Initial requirements of domestic mutual insurers; authorized transactions(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 an original 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) |
Kind of Insurance | Min. No. of Apps. Accepted | Min. No. Subjects Covered | Minimum Premium Collected | Min. Amt. Ins. ea. Subject | Max. Amt. Ins. ea. Subject (v) | Deposit of Min. Surplus Funds (vi) | Deposit of Surplus in Lieu (vi) |
Life (i) Disability | 200 | 200 | Annual Quarterly | $ 1,000 | $ 2,500 | $ 50,000 | $ 150,000 |
(ii) Property | 100 | 250 | Annual | (Weekly Indem.) $ 1,000 | (Weekly Indem.) $ 3,000 | $ 50,000 | $ 200,000 |
(iii) Casualty | 150 | 200 | Annual | $ 1,000 | $ 10,000 | $ 100,000 | $ 200,000 |
(iv) excluding surety & worker's compensation Casualty with worker's compensation | 200 | 500 | Quarterly | $ 1,000 | $ 10,000 | $ 150,000 | $ 250,000 |
(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.