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(a) The operating and administrative expenses of any corporation, including, but not limited to, all costs in connection with the solicitation of subscribers to such a corporation and capital expenditures, shall not exceed:
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(1) Thirty percent (30%) of paid subscriptions during the first year of operation;
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(2) Twenty-five percent (25%) of paid subscriptions during the second year of operation; and
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(3) Twenty percent (20%) of paid subscriptions in any year thereafter.
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(b) Every corporation heretofore incorporated shall maintain unearned subscription charges and other reserves upon the same basis as that required of domestic insurance companies transacting accident and health insurance.
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(c) The reserves required under this section constitute a liability of the corporation in a determination of its financial condition.
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(d) The funds for any corporation shall be invested as provided for insurers under §§ 23-63-801 — 23-63-833 and 23-63-835.
