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§4208
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§4208 . Financial and additional requirements for the organization of mutual life, accident and health, and legal services insurance companies.
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§4208(a)
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(a)
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§4208(a)(1)
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(1) A mutual insurance company may be incorporated and licensed exclusively to do 1 or more of the kinds of insurance business specified in paragraphs §1113(a)(1) , §1113(a)(2) , §1113(a)(3) , §1113(a)(29) and §1113(a)(31) of this chapter, upon compliance with the applicable requirements of §1201 and subsection §1102(e) of this chapter and subsection (this §)(b) .
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§4208(a)(2)
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(2) In (this §) :
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§4208(a)(2)(A)
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(A) "Initial surplus" means the paid-in initial surplus required pursuant to paragraph §1201(a)(9) and paragraph §1102(e)(1) of this chapter.
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§4208(a)(2)(B)
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(B) "Minimum surplus" means the amount of surplus which such company shall, after being licensed to do business, at all times maintain unimpaired.
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§4208(a)(2)(C)
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(C) "Applications" means individual applications for policies of life insurance, except that in the case of volunteer firemen, it shall also mean applications for enrollment for coverage to be issued under group life insurance policies applied for by not less than 25 associations or organizations of volunteer firemen in accordance with the provisions of paragraph §4216(b)(7) of this article.
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§4208(b)
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(b)
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§4208(b)(1)
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(1) If organized to do only the kind of insurance business specified in paragraph §1113(a)(1) of this chapter, such company shall:
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§4208(b)(1)(A)
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(A) have not less than 1000 bona fide applications for life insurance in an amount not less than $1,000 each;
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§4208(b)(1)(B)
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(B) have received from each such applicant in cash the full amount of 1 annual premium on the policy applied for, which premiums in the aggregate at least equal $25,000 ;
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§4208(b)(1)(C)
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(C) have an initial surplus of $150,000 in cash; and
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§4208(b)(1)(D)
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(D) have a minimum surplus of $100,000.
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§4208(b)(2)
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(2) If organized to do only the kind of business specified in item §1113(a)(3)(i) of this chapter, such company shall:
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§4208(b)(2)(A)
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(A) have not less than 500 bona fide applications for such insurance;
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§4208(b)(2)(B)
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(B) have received from each such applicant in cash the full amount of 1 annual premium on the policy applied for, which premiums in the aggregate at least equal $20,000 ;
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§4208(b)(2)(C)
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(C) have an initial surplus of $150,000 in cash; and
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§4208(b)(2)(D)
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(D) have a minimum surplus of $100,000, except that every such company initially licensed on or after July 1st, 1982 shall have an initial surplus and a minimum surplus in an amount which is at least equal to 200% of that required of a like company licensed prior to July 1st, 1982.
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§4208(b)(3)
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(3) If organized to do the kinds of insurance business specified in (¶ (1)) and in item §1113(a)(3)(i) of this chapter, such company shall comply with both paragraph (this sub§)(1) and paragraph (this sub§)(2) .
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§4208(b)(4)
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(4) To be organized to do the kind of insurance business specified in paragraph §1113(a)(2) of this chapter, such company shall meet the organizational requirements of (¶ (1)) hereof and shall have an initial surplus and a minimum surplus, each in an amount at least $50,000 in excess of the respective amounts otherwise required by (¶ (1)) hereof.
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§4208(b)(5)
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(5) To be organized to do the kind of insurance business specified in item §1113(a)(3)(ii) of this chapter, such company shall meet the organizational requirements of 1 or more of paragraphs 1 through 4 hereof and shall have an initial surplus and a minimum surplus, each in an amount at least $50,000 in excess of the highest applicable respective amount required by such (¶ or) ,except that any such company initially licensed on or after July 1st, 1982 shall have an initial surplus and a minimum surplus, each in an amount at least $100,000 in excess of the highest applicable respective amount required by such (¶ or) . Source Data downloaded: 2009-04-19 12: 33: 26; Processed: 2009-05-08 15: 36: 06
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