An insurer shall not be admitted within three years from and after the time when it commences business as an insurer, nor within three years from and after the time when it is first incorporated, unless assets equal to the sum of its liabilities and the minimum capital and surplus required for admission are maintained in cash or one or more of the following:
(a) Securities specified in Sections 1170 to 1175, inclusive.
(b) Premiums that are in the course of collection, or agents’ balances representing premiums, on policies effected not more than 90 days prior to the date on which these premiums or balances are valued for the purpose of this section, and earned service fees receivable, not over 90 days due, and evidences of debt representing those assets.
(c) In the case of a life insurer, the amount of current deferred premiums receivable, after deducting therefrom the amount of the loading.
(d) Interest accrued and dividends declared, receivable on any of the assets specified in subdivisions (a) to (c), inclusive, no part of which interest or dividends has been due in excess of one year.
(e) Amount of reinsurance recoverable from admitted insurers.
(f) With the prior approval of the commissioner, any investments authorized by this code if the following conditions are met:
(1) The insurer has previously been authorized to write life or health insurance, or is seeking authority to write life or health insurance.
(2) The solvency of the insurer is guaranteed by another insurer (the “guaranteeing insurer”) that meets the following criteria:
(A) The guaranteeing insurer has an ownership interest of at least 50 percent in the insurer.
(B) The guaranteeing insurer, which may be a reciprocal or interinsurance exchange, has been admitted to do business in this state for not less than 10 years.
(C) The guaranteeing insurer has maintained a surplus of admitted assets over all liabilities of at least five hundred million dollars ($500,000,000) for not less than three years.
(3) The commissioner, in his or her discretion, determines that the proposed investment is sound in relation to the insurer’s business plan and operations.
(Amended by Stats. 1998, Ch. 495, Sec. 1. Effective January 1, 1999.)