Section 386 - Minimum capital stock and financial requirements to do business(a) Stock life insurance companies organized under clause (1) of subdivision (a) of section two hundred and two (202) of this act must have a paid up capital stock of not less than one million dollars ($1,000,000). Stock life insurance companies, organized under this act, for all of the purposes mentioned in subdivision (a) of section two hundred and two (202), must have a paid up capital stock of at least one million on hundred thousand dollars ($1,100,000). Every such company shall, in addition thereto, have a surplus paid in at least equal to fifty per centum of the subscribed capital stock.(b) Stock fire, stock marine, and stock fire and marine insurance companies, organized under this act, for any of the purposes mentioned in either clauses (1) or (2) of subdivision (b), section two hundred and two (202), of this act, must have a paid up capital stock of not less than one hundred thousand dollars ($100,000); if organized for all the purposes mentioned in clauses (1) and (2) or in clause (3) of subdivision (b), section two hundred and two (202), of this act, two hundred thousand dollars ($200,000); and if organized for all of the purposes mentioned in clauses (1), (2), and (3) of subdivision (b) of section two hundred and two (202) of this act, four hundred thousand dollars ($400,000). Every such company shall, in addition thereto, have a surplus paid in at least equal to fifty per centum (50%) of the subscribed capital stock.(c) Stock casualty companies, organized under this act for any of the purposes of insurance mentioned in subdivision (c) of section two hundred and two (202) of this act, must have a paid up capital stock of not less than seven hundred fifty thousand dollars ($750,000). Stock casualty companies organized under this act may undertake two or more classes of insurance mentioned in subdivision (c) of section two hundred and two (202) of this act, by providing at least fifty thousand dollars ($50,000) paid up capital stock for each class of insurance; except that the paid up capital stock for credit insurance shall be one hundred thousand dollars ($100,000), and the paid up capital stock for fidelity and surety insurance shall be two hundred thousand dollars ($200,000); and except that the paid up capital stock in the case of insurance for the purposes mentioned in clause (11) subdivision (c) of section two hundred and two (202) of this act shall be five hundred thousand dollars ($500,000) and except that the paid up capital stock in the case of workmen's compensation insurance as provided for in clause (14) subdivision (c) of section two hundred and two (202) of the act shall be seven hundred fifty thousand dollars ($750,000). Any stock casualty company organized under this act to undertake two or more classes of insurance mentioned in subdivision (c) of section two hundred and two (202) of this act must have a paid up capital stock equal to the greater of seven hundred fifty thousand dollars ($750,000) or the sum total of the required capital paid up for each class of insurance for which the company is organized, and a company with a paid up capital stock of one million nine hundred fifty thousand dollars ($1,950,000) may transact all of the classes of insurance mentioned in subdivision (c) of section two hundred and two (202) of this act. Every such company shall, in addition thereto, have a surplus paid in at least equal to fifty per centum (50%) of the required paid up capital.(d) Companies organized under this act to insure lives on the mutual plan must have applications for insurance, to the amount of one million dollars ($1,000,000), by not less than four hundred persons. Companies organized under this act to insure lives on the mutual plan must also have a guarantee capital, before commencing business, of not less than two million dollars ($2,000,000), and shall maintain unimpaired a policyholders' surplus of one million dollars ($1,000,000) out of guarantee capital, surplus, or any combination thereof.(e) Mutual companies, other than mutual life companies and other than title insurance companies, which seek a certificate of authority to transact a line or lines of insurance business shall comply with the following conditions:(1) Each such company shall hold bona fide applications for at least twenty (20) policies, to be issued promptly and simultaneously to at least twenty (20) policyholders or members upon not less than two hundred (200) separate risks, each within the maximum single risk described herein, upon the granting of the certificate of authority to do business.(2) The "maximum single risk" shall not exceed three times the average risk or one percentum (1%) of the total insurance applied for, whichever is the greater.(3) It shall have collected at least an annual cash premium upon each of such applications, which premium shall be held in cash in an interest-bearing account established in the name of the insurance company at financial institutions located in this Commonwealth. In the case of companies organized for any of the purposes mentioned in paragraphs (1) or (2) or (3) of subdivision (b) of section two hundred two of this act, the sum or sums of money advanced under section eight hundred nine of this act, shall amount to not less than twenty-five thousand dollars ($25,000) for the purpose mentioned in each numbered paragraph of subdivision (b). If organized for all of the purposes mentioned in paragraphs (1), (2) and (3) of subdivision (b) of section two hundred two of this act, the sum or sums of money advanced under section eight hundred nine of this act shall amount to not less than fifty thousand dollars ($50,000). In the case of companies organized for any one of the purposes mentioned in subdivision (c) of said section two hundred two, except paragraphs (1), (4), (11) and (14), the sum or sums of money advanced under the said section eight hundred nine shall amount to not less than ten thousand dollars ($10,000) for the purpose mentioned in each numbered paragraph of said subdivision (c). In the case of companies authorized to issue non-assessable policies of insurance for the purposes mentioned in clause (11) or clause (14), subdivision (c) of section two hundred and two (202) of the act, the sum or sums of money advanced under the said section eight hundred nine shall amount to not less than seven hundred fifty thousand dollars ($750,000). For the purpose mentioned in either numbered paragraph (1) or (4) of said subdivision (c), such amount shall be not less than twenty-five thousand dollars ($25,000): Provided, That in no event shall a company be organized for any of the purposes mentioned in said subdivision (c) unless the sum or sums of money advanced under said section eight hundred nine shall amount to not less than fifty thousand dollars ($50,000); nor shall a company be organized for all of the purposes mentioned in said subdivision (c) except paragraph (11) or (14) unless the sum or sums of money so advanced shall amount to not less than three hundred fifty thousand dollars ($350,000).(4) In the case of companies hereafter organized for the purposes mentioned in subdivisions (b) and (c) of section two hundred two of this act, each such company shall meet the requirements of paragraphs (1) and (2) of subdivision (e) of this section, and the required sum of money advanced under said section eight hundred nine shall not be less than the aggregate of the sums required under paragraph (3) of subdivision (e) of this section for the purposes for which the company is to be incorporated.(5) For the purpose of transacting employer's liability and workmen's compensation insurance, the application shall cover not less than five thousand (5,000) employes, each such employe being considered a separate risk for determining the maximum single risk.(6) Each company writing non-assessable policies shall maintain unimpaired so much of its surplus as is equal to the minimum capital required for stock companies authorized to transact the same class or classes of insurance; each company writing assessable policies shall maintain unimpaired fifty per centum (50%) of its required surplus.(f) Every stock fire, stock marine, stock fire and marine, or stock casualty company, organized under this act for any or all of the purposes mentioned in both subdivisions (b) and (c) of section two hundred two of this act, must have paid up capital and paid in surplus of not less than the aggregate amount of paid up capital and paid in surplus required for such purpose or purposes of a stock fire, stock marine and stock fire and marine insurance company in subdivision (b) and of a stock casualty insurance company in subdivision (c) of this section.1921, May 17, P.L. 682, art. II, § 206. Amended 1937, July 1, P.L. 2527, § 1; 1937, July 1, P.L. 2528, § 1; 1953, July 2, P.L. 331, § 2; 1963, Aug. 24, P.L. 1157, § 2; 1968, Nov. 27, P.L. 1118, No. 349, §§4[ §3], 5[ § 4]; 1976, July 9, P.L. 948, No. 184, § 2; 1981 , June 19, P.L. 94, No. 33, § 1; 1989 , July 7, P.L. 228, No. 37, § 1; 1992, Dec. 18, P.L. 1519, No. 178, § 2, effective in 120 days.