58-5A-34. Adequacy of insurer's surplus--Factors considered.
For purposes of this chapter in determining whether an insurer's surplus to policyholders is reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs, the following factors, among others, shall be considered:
(1)The size of the insurer as measured by its assets, capital and surplus, reserves, premium writings, insurance in force, and other appropriate criteria;
(2)The extent to which the insurer's business is diversified among the several lines of insurance;
(3)The number and size of risks insured in each line of business;
(4)The extent of the geographical dispersion of the insurer's insured risks;
(5)The nature and extent of the insurer's reinsurance program;
(6)The quality, diversification, and liquidity of the insurer's investment portfolio;
(7)The recent past and projected future trend in the size of the insurer's surplus to policyholders;
(8)The surplus to policyholders maintained by other comparable insurers;
(9)The adequacy of the insurer's reserves;
(10)The quality and liquidity of investments in affiliates made pursuant to this chapter and chapters 58-26 and 58-27. The director may treat any investment under this subdivision as a disallowed asset; and
(11)The quality of the company's earnings and the extent to which the reported earnings include extraordinary items.
Source: SL 1972, ch 267, §28; SL 1992, ch 341, §26; SL 1993, ch 359, §4.