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§6402
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§6402 . Organization; financial requirements. A title insurance corporation may be organized and licensed in the manner prescribed in subsection §1102(e) and §1201 of this chapter, except as hereinafter prescribed, to do the kind of insurance business, and with the incidental powers, specified in §6403 of this article, with a paid-in capital of at least $500,000 and a paid-in initial surplus at least equal to 50% of its paid-in capital, and it shall at all times thereafter maintain a capital at least equal to $500,000, except that any such corporation organized before July 1st, 1982, shall at all times maintain a minimum capital of $250,000. In the organization any such corporation the provisions §1201 of this chapter shall be superseded or supplemented by the following provisions:
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§6402(a)
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(a) The duration of such corporation shall be perpetual.
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§6402(b)
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(b) Its principal office shall be located in this state.
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§6402(c)
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(c) The purposes for which such corporation shall be organized shall only be such as are specified in §6403 of this article.
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§6402(d)
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(d) Its incorporators shall be natural persons, not less than 7 in number, and shall possess the qualifications of directors prescribed in (sub§ (e)) hereof.
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§6402(e)
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(e) Its directors shall be natural persons, not less than 7 in number, all citizens of the United States, a majority of whom shall be citizens and residents of this state at the time of their election and during their continuance in office.
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§6402(f)
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(f) Before a license to do business shall be issued to such corporation a list of its shareholders shall be filed in the office of the superintendent, subscribed and affirmed as true under the penalties of perjury by 2 of its principal officers, giving the name, residence and post-office address of, and number of shares held by, each shareholder.
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§6402(g)
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(g) No foreign or alien insurer shall be granted a license or renewal of a license to do in this state the kind of business specified in paragraph §1113(a)(18) of this chapter if it may exercise any powers or conduct any business without this state not authorized by such paragraph , or unless its surplus to policyholders, of which not more than 5% of its admitted assets shall be represented by title plant or plants, is at the time of initial licensing not less than the sum of (i) the minimum capital and initial surplus required of a similar domestic insurer, and (ii) an amount by which reserves computed in accordance with paragraphs §6405(a)(1) and §6405(a)(2) of this article on business within and without the state exceed its reserves of a comparable nature, whether statutory or voluntary, and unless such insurer at all times thereafter maintains a surplus to policyholders, similarly limited as to value of title plant or plants, at least equal to the sum of such minimum capital and reserves determined as hereinabove set forth, or if it fails to meet any other requirements of this chapter applicable to a domestic title insurance corporation except that any such insurer initially licensed on or after July 1st, 1982, shall have a surplus to policyholders at least equal to the sum of (i) minimum capital and initial surplus required of a like domestic insurer initially licensed on or after July 1st, 1982, and (ii) reserves as hereinabove required; and shall maintain a surplus to policyholders at least equal to the sum of (i) the reserves hereinabove required and (ii) the minimum capital required of a domestic insurer initially licensed on or after July 1st, 1982. Source Data downloaded: 2009-04-09 15: 32: 13; Processed: 2009-05-08 15: 36: 24
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