(a) To assure the faithful performance of its obligation to its members or subscribers, every ambulance service association shall, prior to issuance of its certificate of authority by the Commissioner, deposit with the Commissioner, securities of the type eligible for deposit by insurers under chapter 9, section 207 of this title, and having a market value of not less than $25,000; provided, however, that the Commissioner in his discretion, and as often as he deems it necessary, may order the association to increase its deposit for the benefit of contract holders in the territory. Such deposit requirement shall be in addition to the capital funds requirement in section 1676 of this title. Whenever the market value of the securities deposited with the Commissioner is less than 95 percent of the amount required under this subsection, the association shall deposit additional securities or otherwise increase the deposit to the amount specified in this subsection.
(b) In lieu of any deposit of securities required under subsection (a) of this section, the association may file with the Commissioner a surety bond in like amount. The bond shall be one issued by an authorized surety insurer, shall be for the same purpose as the deposit in lieu of which it is filed, and shall be subject to the approval of the Commissioner. The bond shall guarantee that the ambulance service association will faithfully and truly perform all the conditions of any ambulance service contract. No such bond shall be cancelled or shall be subject to cancellation unless at least 60 days' advance notice, in writing, is filed with the Commissioner. In the event that notice of termination of the bond is filed with the Commissioner, the ambulance service association insured thereunder shall, within 30 days of the filing of notice of termination, provide the Commissioner with a replacement bond meeting the requirements of this subsection or deposit additional securities as required under subsection (a). The cancellation of a bond does not relieve the obligation of the issuer of the bond for claims arising out of contracts issued prior to cancellation of the bond unless a replacement bond or securities are filed. In no event shall the issuer's liability under the bond exceed the face amount of the bond. If within 30 days of filing the notice of termination no replacement bond or additional security is provided, the Commissioner shall suspend the license of the association until the deposit requirements are satisfied.
(c) The association shall, during its solvency, have the right to exchange or substitute other securities of like quality and value for securities so on deposit, to receive the interest and other income accruing on such securities and to inspect the deposit at all reasonable times.
(d) The deposit or bond shall be maintained unimpaired as long as the association continues in business in the territory. Whenever the association ceases to do business in the territory and furnishes to the Commissioner satisfactory proof that it has discharged or otherwise adequately provided for all its obligations to its members or subscribers in the territory, the Commissioner shall release the deposited securities to the entitled parties, on presentation of the receipts of the Commissioner for such securities, or release any bond filed in lieu of such deposit.