Minimum Surplus; Letter of Credit

No captive insurance company shall be issued a license unless it shall possess and thereafter maintain free surplus of:

(1)in the case of a pure captive insurance company, not less than One Hundred Thousand Dollars ($100,000.00); COL120106 CH. 23 CAPTIVE INSURANCE COMPANIES

(2)in the case of a group captive insurance company incorporated as a mutual insurer, not less than One Hundred Fifty Thousand Dollars ($150,000.00);

(3)in the case of an industrial insured captive insurance company incorporated as a stock insurer, not less than Two Hundred Thousand Dollars ($200,000.00);

(4)in the case of a group captive insurance incorporated as a mutual insurer, not less than Two Hundred Thousand Dollars ($200,000.00);

(5)in the case of an industrial insured captive insurance company incorporated as a mutual insurer, not less than Two Hundred Thousand Dollars ($200,000.00); and

(6)in the case of a rent-a-captive or a protected cell company, not less than Two Hundred Fifty Thousand Dollars ($250,000.00). Such surplus may be in the form of

(i)cash or an irrevocable letter of credit issued by a member bank of the Federal Reserve System and approved by the Commissioner; or

(ii)any other acceptable to the Commissioner.