SEC. 83-31-21. License.

No such company shall issue policies or transact any business of insurance unless it shall hold a license from the commissioner authorizing the transaction of such business. Said license shall not be issued until and unless the company shall have in paid-up or contributed surplus not less than fifty thousand dollars, and shall have complied with the following conditions:

(a) It shall hold bona fide applications for insurance upon which it shall issue simultaneously, or it shall have in force, at least twenty policies to at least twenty members for the same kind of insurance upon not less than two hundred separate risks, each within the maximum single risk described herein.

(b) The "maximum single risk" shall not exceed twenty per cent of the admitted assets or three times the average risk or one per cent of the insurance in force, whichever is the greater, any reinsurance taking effect simultaneously with the policy being deducted in determining such maximum single risk.

(c) It shall have collected a premium upon each application, which premium shall be held in cash or securities in which insurance companies are authorized to invest, and shall be equal, in case of fire insurance, to not less than twice the maximum single risk assumed subject to one fire, nor less than ten thousand dollars, and in any other kind of insurance to no less than five times the maximum single risk assumed, and in case of workmen's compensation insurance to not less than fifty thousand dollars.

(d) For the purpose of transacting employer's liability and workmen's compensation insurance, the applications shall cover not less than one thousand five hundred employees, each such employee being considered a separate risk for determining the maximum single risk.

SOURCES: Codes, Hemingway's 1921 Supp. Sec. 5209g; 1930, Sec. 5278; 1942, Sec. 5792; Laws, 1918, ch. 157; 1956, ch. 336, Sec. 2.

1997 Amendment

 SECTION 16. Section 83-31-21, Mississippi Code of 1972, is amended as follows:

 83-31-21. No such company shall issue policies or transact any business of insurance unless it shall hold a license from the commissioner authorizing the transaction of such business. Such license shall not be issued until and unless the company shall have in paid-up or contributed surplus the amount required in Section 83-19-73.

SOURCE: 1997 Laws, Chapter 410, Sec. 16, HB585, Effective July 1, 1997.