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(a) When newly organized a domestic mutual insurer may be authorized to transact any one of the kinds of insurance listed in the schedule contained in subsection (b) of this section.
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(b) When applying for an original certificate of authority the insurer must be otherwise qualified therefor under this title, and must have received and accepted bona fide applications as to substantial insurable subjects for insurance coverage of a substantial character of the kind of insurance proposed to be transacted; must have collected in cash the full premium therefor at a rate not less than usually charged by stock insurers for comparable coverages; and must have surplus funds on hand as of the date such insurance coverages are to become effective, or, in lieu of such applications, premiums, and surplus, may deposit surplus, all in accordance with that part of the following schedule which applies to the one kind of insurance the insurer then proposes to transact:
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SCHEDULE
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| (A) | (B) | (C) | (D) | (E) | (F) | (G) | (H) |
|---|---|---|---|---|---|---|---|
| Kind of
insur- ance |
Minimum
no. of applicants accepted |
Minimum
no. of subjects covered |
Minimum
premium collected |
Minimum
amount ins. each subject |
Maximum
amount of ins. each subject (v) |
Minimum
Surplus Funds |
Deposit
of sur- plus in lieu (vi) |
| Life (i) | 500 | 500 | annual | $1,000 | $2,500 | $25,000 | $50,000 |
| 10 | 25 | ||||||
| Disability (ii) | 500 | 500 | quart. | weekly
indem. |
weekly
indem. |
25,000 | 50,000 |
| Property (iii) | 100 | 250 | annual | 1,000 | 3,000 | 25,000 | 50,000 |
| Vehicle (iv) | 200 | 500 | annual | 1,000 | 10,000 | 150,000 | 150,000 |
| Casualty (v) | 250 | 250 | annual | 1,000 | 10,000 | 150,000 | 200,000 |
The following provisos are respectively applicable to the foregoing schedule and provisions as indicated by like roman numerals appearing in such schedule:
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(1) No group insurance, nor term policies for terms of less than ten years shall be included.
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(2) No group or blanket or family plans of insurance shall be included. In lieu of weekly indemnity a like premium value in medical, surgical and hospital benefits may be provided. Any accidental death or dismemberment benefit provided shall not exceed $2,500.
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(3) Only insurance of the owner’s interest in real property may be included, and all such coverages must be in compliance with the provisions of section 464(b) of this title.
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(4) Must include insurance of legal liability for bodily injury and property damage, to which the maximum and minimum insured amounts apply.
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(5) The maximums provided for in column (F) are net of applicable reinsurance.
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(6) The deposit of surplus in the amount specified in column (H) must thereafter be maintained unimpaired. The deposit is subject to the provisions of chapter 29 of this title (deposits of insurers).