20-213. Deposit requirements

The director shall not issue a certificate of authority to any insurer unless it has deposited in trust with the state treasurer through the director's office cash or securities eligible for the investment of capital funds of domestic insurers under this title in an amount not less than the minimum required capital stock, if a stock insurer, or minimum required basic surplus, if a mutual or reciprocal insurer, required pursuant to this article to be maintained for authority to transact the kinds of insurance to be transacted, except:

1. As to life and disability carriers there shall be maintained with the state treasurer or a trustee approved by the director, a deposit in cash, surety bond or securities as described in sections 20-537 through 20-548 and sections 20-551 through 20-556, in an amount equal to the greatest of:

(a) Minimum required capital stock or minimum required basic surplus pursuant to section 20-210.

(b) Two-thirds of the aggregate reserves as computed under section 20-510.

(c) Twenty-five per cent of the earned premium of the prior year.

2. As to title insurers, the deposit shall be in such amount as is required by article 9 of chapter 6 of this title.

3. As to foreign insurers, in lieu of such deposit or part thereof in this state, the director shall accept the current certificate in proper form of the public official having supervision over insurers in any other state to the effect that a like deposit or part thereof by such insurer is being maintained in public custody in such state in trust for the purpose, among other reasonable purposes of protection of policyholders in this state.

4. As to alien insurers, in lieu of such deposit or part thereof in this state, the director shall accept evidence satisfactory to him that the insurer maintains within the United States by way of deposits with public depositaries, or in trust institutions within the United States approved by the director, assets available for discharge of its United States insurance obligations which assets shall be in amount not less than the outstanding liabilities of the insurer arising out of its insurance transactions in the United States, together with, in the case of title insurers, the sum required by article 9 of chapter 6 of this title, and, in the case of all other insurers, together with the larger of the following sums:

(a) The largest deposit required by this title to be made in this state by any type of domestic insurer transacting like kinds of insurance, or

(b) Three hundred thousand dollars.

5. No deposit requirement for any insurer provided by this section shall exceed five hundred thousand dollars.