SEC. 83-19-73. Schedule of surplus to be maintained.
(1) All domestic stock, mutual and reciprocal insurance companies and associations of every kind and nature doing business in this state shall maintain at all times a surplus, after deduction of reserves and exclusive of capital, if any, of not less than the amount set out in the following schedule.
(a) Companies formed to write plate glass, fire, windstorm, extended coverages, related coverages, wet marine or inland marine risks, a surplus of Six Hundred Thousand Dollars ($600,000.00);
(b) Companies formed to transact the business of fidelity, casualty, surety and guaranty insurance, a surplus of Six Hundred Thousand Dollars ($600,000.00);
(c) Companies formed for the purpose of transacting the business authorized under the (g) and (h) paragraphs of Section 83-19-1, a surplus of Six Hundred Thousand Dollars ($600,000.00);
(d) Companies formed for the purpose of transacting ordinary life insurance or accident and health insurance, or companies formed to write both lines, a surplus of Six Hundred Thousand Dollars ($600,000.00);
(e) Companies formed for the purpose of transacting the business of life insurance on the industrial plan, or accident and health insurance on the industrial plan, or life, accident and health insurance on the industrial plan, a surplus of Fifty Thousand Dollars ($50,000.00).
Provided, however, companies which may be formed to write coverages in more than one (1) subsection above, and being what is commonly known as multiple line companies, shall maintain a surplus of not less than Nine Hundred Thousand Dollars ($900,000.00).
A reciprocal or mutual company writing assessable policies only shall maintain a surplus of one-half ( 1 /2 ) the amount required of a stock company writing similar lines of insurance.
(2) If at any time the surplus of such domestic company or association shall be less than the surplus set out in the foregoing schedule, such company or association shall be considered impaired; and it shall be the duty of the secretary-treasurer, directors and other proper officers of such company or association to report any such impairment of surplus to the Commissioner of Insurance of this state in writing within ten (10) days after such impairment occurs. When any such impairment is reported, or if the Commissioner of Insurance should otherwise gain knowledge of the fact that the surplus of any such company or association has been impaired, the commissioner shall forthwith suspend the certificate of authority or license of such domestic insurance company or association to do business in this state until such company shall raise or increase its surplus to the amount equal to that required herein.
(3) The provisions of this section as to minimum surplus requirements shall not become effective until January 1, 1988, concerning any domestic insurance company which was authorized to do business and was writing business in this state on July 1, 1985.
SOURCES: Codes, 1942, Sec. 5670.1; Laws, 1958, ch. 452, Sec. 1; 1962, ch. 461, Secs. 1-3; 1976, ch. 402, Sec. 2; 1987, ch. 365, eff from and after July 1, 1987.
1997 Amendment
SECTION 15. Section 83-19-73, Mississippi Code of 1972, is amended as follows:
83-19-73. (1) All domestic stock, * * * insurance companies and associations of every kind and nature doing business in this state shall maintain at all times a surplus, after deduction of reserves and exclusive of capital, if any, of not less than the amount set out in the following schedule:
(a) Companies formed to write plate glass, fire, windstorm, extended coverages, related coverages, wet marine or inland marine risks, a surplus of Six Hundred Thousand Dollars ($600,000.00);
(b) Companies formed to transact the business of fidelity, casualty, surety and guaranty insurance, a surplus of Six Hundred Thousand Dollars ($600,000.00);
(c) Companies formed for the purpose of transacting the business authorized under paragraphs (g) and (h) of Section 83-19-1, a surplus of Six Hundred Thousand Dollars ($600,000.00);
(d) Companies formed for the purpose of transacting ordinary life insurance or accident and health insurance, or companies formed to write both lines, a surplus of Six Hundred Thousand Dollars ($600,000.00);
(e) Companies formed for the purpose of transacting the business of life insurance on the industrial plan, or accident and health insurance on the industrial plan, or life, accident and health insurance on the industrial plan, a surplus of Fifty Thousand Dollars ($50,000.00).
Provided, however, companies which may be formed to write coverages in more than one (1) subsection above, and being what is commonly known as multiple line companies, shall maintain a surplus of not less than Nine Hundred Thousand Dollars ($900,000.00). All mutual and reciprocal companies shall possess at the time of initial license and maintain thereafter a surplus, after deductions for reserves, in an amount equal to the capital and surplus requirements of a stock company writing similar lines of insurance.
* * *
(2) If at any time the surplus of such domestic company or association shall be less than the surplus set out in the foregoing schedule, such company or association shall be considered impaired; and it shall be the duty of the secretary-treasurer, directors and other proper officers of such company or association to report any such impairment of surplus to the Commissioner of Insurance of this state in writing within ten (10) days after such impairment occurs. When any such impairment is reported, or if the Commissioner of Insurance should otherwise gain knowledge of the fact that the surplus of any such company or association has been impaired, the commissioner shall forthwith suspend the certificate of authority or license of such domestic insurance company or association to do business in this state until such company shall raise or increase its surplus to the amount equal to that required herein.
SOURCE: 1997 Laws, Chapter 410, Sec. 15, HB585, Effective July 1, 1997.