26.1-05-04. Capital stock and surplus requirements of domestic stock company - Exceptions

26.1-05-04. Capital stock and surplus requirements of domestic stock company -

Exceptions.

A stock insurance company may not be incorporated under this chapter unless it has an

authorized capital stock of at least five hundred thousand dollars and a surplus of at least five

hundred thousand dollars. A domestic stock insurance company may not issue any insurance

policy until at least fifty percent of the required capital stock, and all of the required surplus, has

been paid in, the residue of capital stock to be paid in within twelve months from the time of

filing the articles of incorporation. The commissioner, for good cause shown, may extend the

time of payment of the residue for the further period of one year. If the minimum capital stock

and surplus requirements at the time a stock insurance company incorporated under this

chapter were less than the minimum requirements provided by this section, the stock insurance

company shall increase its authorized and paid-in capital stock and surplus to the minimum

requirements under this section according to the following schedule:

1. Capital of two hundred fifty thousand dollars and surplus of two hundred fifty thousand

dollars by December 31, 1994.

2. Capital of three hundred seventy-five thousand dollars and surplus of three hundred

seventy-five thousand dollars by December 31, 1995.

3. Capital of five hundred thousand dollars and surplus of five hundred thousand dollars

by December 31, 1996.

Except as otherwise provided in this section, the total value of paid-in capital stock and surplus

of a stock insurance company organized under the laws of this state may not at any time be

depleted to an amount totaling less than one million dollars.