ARS § 20-210

20-210 - Minimum required capital stock or basic surplus 20-210 . Minimum required capital stock or basic surplus A. Except as provided in subsection B, to qualify for authority to transact any one kind of insurance or combinations of kinds of insurance as shown below, an insurer shall possess and thereafter maintain unimpaired minimum required capital stock, if a stock insurer, or unimpaired minimum required basic surplus, if a mutual or a reciprocal insurer, and free surplus not less than fifty per cent of the initial free surplus, and when first so authorized shall possess initial free surplus, all in amounts not less than as determined from the following table:                  Stock Insurers      Mutual Insurers      Reciprocal Insurers            Minimum          Minimum          Minimum    Kind or    Required   Initial    Required   Initial    Required   Initial Kinds of   Capital    Free Basic Free Basic Free Insurance  Stock Surplus    Surplus    Surplus    Surplus    Surplus Casualty         $600,000         $300,000   $600,000   $300,000   $600,000     $300,000 Disability       300,000         150,000   300,000   150,000   300,000   150,000 Life       300,000         150,000   300,000   150,000       Not Applicable Disability and life         400,000         200,000   400,000   200,000       Not Applicable Marine and Transporta-      600,000         300,000   600,000   300,000   600,000   300,000   tion Property         600,000         300,000   600,000   300,000   600,000   300,000 Surety           1,000,000        500,000   1,000,000  500,000   1,000,000  500,000 Multiple Line    1,000,000        500,000   1,000,000  500,000   1,000,000  500,000 Vehicle           600,000         300,000   600,000   300,000   600,000   300,000 Title      500,000         250,000     Not Applicable     Not Applicable B. A domestic insurer, including a domestic limited stock insurer subject to the capital and surplus requirements prescribed in subsection D of this section, holding a valid certificate of authority to transact insurance in this state of the kind or kinds as set forth in subsection A prior to the effective date of this section, may, if otherwise qualified, continue to be so authorized while possessing the amount of paid-in capital stock, if a stock insurer, or surplus, if a mutual insurer, required by the laws of this state for such authority immediately prior to the effective date of this section. The director shall not grant such an insurer authority to transact any other or additional kinds of insurance unless such insurer fully complies with the requirements as to capital and surplus, as applied to all kinds of insurance which the insurer proposes to transact, as provided by this section for like insurers applying for original certificates of authority under this title. Upon a change in the control of such an insurer, such insurer shall within one year from the effective date of such change in control meet the capital and surplus requirements for new insurers pursuant to subsection A of this section. For the purposes of this subsection "control" shall have the same meaning and be determined in the same manner as prescribed in section 20-481. C. Capital and surplus requirements are based upon all kinds of insurance transacted by the insurer in all areas in which the insurer operates or proposes to operate whether or not only a portion of such kinds are to be transacted in this state. D. Notwithstanding the limitation in the first sentence of subsection B of this section on increased capitalization for authorized insurers, any domestic limited stock insurer which on January 31, 1969 was the holder of a valid certificate of authority shall not be required to meet the capital and initial free surplus requirement of this section, but after January 31, 1980, any such domestic limited stock insurer shall possess and thereafter maintain: 1. Minimum paid-in capital stock of one hundred thousand dollars, and 2. Surplus funds in an amount of not less than one-half such minimum paid-in capital. On and after the effective date of this section any domestic limited stock insurer which holds a valid certificate of authority immediately prior to such effective date and which qualified under the provisions of subsection B of section 20-708 and whose premium income as a direct writer during calendar year 1976 did not exceed fifty per cent of its total premium income including reinsurance premiums from insurance policies and contracts for such year, shall be a domestic life and disability reinsurer and be subject to the provisions of article 10, of chapter 4 of this title.