Section 379.710 - Surplus required - claim reserve fund - phase-in of requirements1. In order to commence writing the business enumerated in only one subdivision of subsection 1 of section 379.650, a reciprocal or interinsurance exchange shall have as a surplus, in addition to other reserves required, a sum in cash or securities amounting to at least one million six hundred thousand dollars.2. In order to commence writing the business enumerated in more than one of the subdivisions of subsection 1 of section 379.650, a reciprocal or interinsurance exchange shall have as a surplus, in addition to other reserves required, a sum in cash or securities amounting to at least two million four hundred thousand dollars.3. In order to continue writing new business, any reciprocal or interinsurance exchange shall maintain a surplus in the amount required to commence business.4. In addition to the foregoing requirements, in the case of employer's liability, public liability, workers' compensation and automobile insurance, there shall be maintained as a claim or loss reserve in cash or securities, assets sufficient to discharge all liabilities on all outstanding losses arising under policies issued, the same to be calculated in accordance with the laws of the state relating to similar reserves for companies insuring similar risks.5. Violation of any of the provisions of this section by a reciprocal or interinsurance exchange is grounds for the suspension or revocation of its certificate of authority by the director.6. Notwithstanding any other provision of this section, any reciprocal or interinsurance exchange licensed in this state to write the business specified in one subdivision of subsection 1 of section 379.650 on July 1, 1987, which did not have a surplus of at least one million six hundred thousand dollars on December 31, 1986, may renew its license for business specified therein until December 31, 1989, if it maintains as a surplus, in addition to other sums required, a sum, in cash or securities, if all other conditions are met, amounting to not less than: (1) On and after December 31, 1989, one million dollars;(2) On and after December 31, 1990, one million two hundred thousand dollars;(3) On and after December 31, 1991, one million four hundred thousand dollars;(4) On and after December 31, 1992, one million six hundred thousand dollars.7. Notwithstanding any other provision of this section, any reciprocal or interinsurance exchange licensed to do business in this state and to write the business specified in more than one of the subdivisions of subsection 1 of section 379.650 on July 1, 1987, which did not have a surplus of at least two million four hundred thousand dollars on December 31, 1986, may renew its license for business specified therein until December 31, 1989, if it maintains as a surplus, in addition to other sums required, a sum, in cash or securities, if all other conditions are met, amounting to not less than:(1) On and after December 31, 1989, one million eight hundred thousand dollars;(2) On and after December 31, 1990, two million dollars;(3) On and after December 31, 1991, two million two hundred thousand dollars;(4) On and after December 31, 1992, two million four hundred thousand dollars.8. Notwithstanding any other provision of this section, any reciprocal or interinsurance exchange, which before August 28, 1989, was lawfully transacting business in this state under the surplus requirements for a reciprocal or interinsurance exchange transacting only one class of insurance but which after August 28, 1989, will be subject to the surplus requirements for a reciprocal or interinsurance exchange transacting more than one class of insurance, shall be allowed to continue to transact the same business under the surplus requirements for a reciprocal or interinsurance exchange transacting only one class of insurance until December 31, 1990, at which time the surplus requirements for a reciprocal or interinsurance exchange transacting more than one class of insurance shall be met.Prior revisions: 1929 § 5971; 1919 § 6379