§ 27-1-37 - Minimum capital and surplus requirement – Charters. - Rhode Island Statutes

SECTION 27-1-37

   § 27-1-37  Minimum capital and surplusrequirement – Charters. – (a) No domestic insurance corporation shall commence business and write, issue,or effect any policy of insurance unless the capital stock of the company is atleast equal to one million dollars ($1,000,000) and the gross paid in andcontributed surplus of the company is at least equal to two million dollars($2,000,000), or, if a mutual company, its net assets over all liabilitiesamount to not less than three million dollars ($3,000,000), or, if a mono linebusiness company, has a combined capital and surplus of two million dollars($2,000,000), and until it has secured from the commissioner of insurance acertificate in compliance with the provisions of its charter and this section."Commence business" as used in this section means the date of issuance of acertificate in compliance by the insurance commissioner.

   (b) The provisions of this section relating to capital andsurplus requirements shall also apply to all charters for domestic insurancecompanies which have not commenced business prior to June 18, 1991. Theprovisions of this section relating to capital and surplus requirements shallalso apply to domestic insurance companies which have undergone a change incontrol subsequent to August 1, 1995, except that the commissioner of insurancemay require lesser capital and surplus, but in no event less than one milliondollars ($1,000,000) as he or she deems appropriate for the protection of allpolicyholders and the general public, based upon his or her review of thetransaction resulting in the change in control of the insurer. "Control" asused in this section shall be defined in accordance with § 27-35-1(c).