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Statutory Minimum Capital and Surplus Requirements - Industry UCAA
STATUTORY MINIMUM CAPITAL AND SURPLUS REQUIREMENTS

The chart below identifies the minimum capital and surplus requirement for each Uniform State. A link to the Application instructions for Primary Application, Section II, Filing Requirement Item 3Expansion Application, Section II, Filing Requirement Item 3; and Corporate Amendment Application Section I and V, Filing Requirement Item 5 are provided.

Updates to the information will be noted with a " * " next tot he state name and edits will be italicized and bolded.
Last Updated: 06/30/2020

State Dollar Amount/ Code Citation/ Instructions
AL

§ 27-3-7 and 27-3-8 Code of Alabama, as amended.

Instructions:
Amount is calculated using table in statute based on lines of authority approved in domestic state.

AK

AS 21.09.070 and 3 ACC 28.050 for companies writing variable lines of business.

Instructions:
Amount is calculated using table in statute based on lines of authority approved in domestic state.

AZ

A.R.S. § 20-210 through 20-212

Mortgage Guaranty                A.R.S. 20-1541
Prepaid Legal                         A.R.S. 20-1097
Title                                        A.R.S. 20-1561

Instructions:
Amount is calculated using table in statute based on lines of authority approved in domestic state.

AR

Ark. Code Ann. 23-63-205 and 23-63-207
Amount is calculated using table in statute based on lines of authority approved in domestic state.

CA

P&C: Statutory minimum paid-in capital is between $1 to $2.6 million and minimum surplus is between $1 to $2.8 million. (§ 700.01-700.05)

Life & disability: Both statutory minimum paid-in capital & statutory minimum surplus are $2.5 million. (§ 10510, 10511, 10512 and 700.02  and 700.05.)

Instructions: 
Commissioner has discretion to require aggregate capital & surplus above statutory mini-mums prior to admission.

CT

Specific to the lines of business to be transacted (C.G.S. §38a-72).

Instructions:
See Connecticut's State-Specific Information in the State Charts for specific amounts.

CO

The greater of:
•   The statutory minimum in §10-3-201, C.R.S.
•   Three times the Authorized Control Level of the RBC Results.
•   10 times the highest net single risk insurance  (for Property and Casualty only).

DE

[18 Del. C. § 511(a)]

Life
Stock & Mutual Insurer
Capital Stock $300,000
Free Surplus $150,000

Health
Stock, Mutual & Reciprocal Insurer
Capital Stock $300,000
Free Surplus $150,000

Life & Health
Stock & Mutual Insurer
Capital Stock $350,000
Free Surplus $200,000

Property
Stock, Mutual& Reciprocal Insurer
Capital Stock $300,000
Free Surplus $150,000

Casualty
Stock, Mutual & Reciprocal Insurer
Capital Stock $400,000
Free Surplus $200,000

Marine & Transportation
Stock, Mutual & Reciprocal Insurer
Capital Stock $350,000
Free Surplus $175,000

Surety
Stock, Mutual & Reciprocal Insurer
Capital Stock $300,000
Free Surplus $150,000

Multiple Line
Stock, Mutual & Reciprocal Insurer
Capital Stock $500,000
Free Surplus $250,000

Title
Stock Insurer
Capital Stock $250,000
Free Surplus $125,000

DC

Property & Casualty - (Capital-$300,000 plus Surplus-$300,000); Total $600, 000.
            DC Code § 31-2502.13

Life - (Capital-$1,000,000. plus Surplus-50% of Capital). Total $1,500.000.
            DC Code § 31-4408 and § 31-4501.

Health Maintenance Organization - Initial net worth requirement is $1,500,00.
            DC Code § 31-3412(a)

Title Insurers – Minimum paid in capital of $500,000 and paid-in initial surplus of $500,000 for a total minimum capital and surplus of $1 million.
            DC Code § 31-5031.05.

FL

Property and Casualty Insurers – greater of $5 million or 10% of total liabilities (F.S. 624.407)
Exception: financial guaranty insurance requires the total policyholder surplus to exceed $100 million (F.S. 627.973(1)(a); residential property insurer not holding a Certificate of Authority before July 1, 2011, $15 million (F.S. 624.408(1)(f)); domestic residential property insurer $15 million if not a wholly owned subsidiary of an insurer domiciled in another state (F.S. 624.407(1)(e)); domestic residential property insurer that is a wholly owned subsidiary of an insurer domiciled in another state $50 million (F.S. 624.407(1)(e)); domestic insurer that only transacts limited sinkhole coverage for personal lines residential property pursuant to F.S. 627.7151, $7.5 million; domestic mutual insurers are governed by F.S. 628;  domestic reciprocal insurers are governed by F.S. 629
Mono-line insurer, Title, Surety, or Ocean Marine – greater of $2.5 million or 10% of insurer’s total liabilities (F.S. 624.407)
Financial Guaranty Insurance Corporation – at least $50 million
Life Insurers – greater of $2.5 million or 4% of the insurer’s total liabilities (F.S. 624.407)
Life and Health Insurers – greater of $2.5 million or 4% of the insurer’s total liabilities plus 6% of the insurer’s liabilities relative to health insurance (F.S. 624.407)
Fraternal Benefit Society – Florida Statutes require that the society must not be in unsound financial condition or use methods or practices that are hazardous or injurious to policyholders or the public (F.S. 632.633 and F.S. 624.418).

GA Minimum Capital and Surplus of $3,000,000                  O.C.G.A. §33.-3-6 and 33-3-7
HI Depends on the line of business to be transacted  (§ 431:3-205, HRS), (§ 431:3-208 HRS)
ID

Life, Disability and Life and Disability
Paid up Capital Stock or Basic Surplus - $1,000,000
Additional Surplus - $1,000,000

Property, General Casualty, Marine and Transportation, Vehicle and Surety
Paid up Capital Stock or Basic Surplus - $1,000,000
Additional Surplus - $1,000,000

Any two of the following kinds of insurance: Property, marine & transportation, general casualty, vehicle, surety, disability.
Paid up Capital Stock or Basic Surplus - $1,000,000
Additional Surplus - $1,000,000

Multiple lines (all insurance except life and title insurance)
Paid up Capital Stock or Basic Surplus - $1,000,000
Additional Surplus - $1,000,000

Mortgage guaranty insurance
Paid up Capital Stock or Basic Surplus - $1,500,000
Additional Surplus - $1,500,000

  • If authorized for Managed Care only, minimum capital and surplus may be determined by §41-3905(8) and IDAPA 18.01.26.

**       If authorized for Limited Managed Care Plan, minimum capital and surplus may be determined by § 41-3905(2).

IL

Primary& Expansion App:
Stock - Life 
Capital      $1,000,000
Surplus     $1,000,000
Deposit     $1,500,000

Mutual - Life
Capital      N/A
Surplus     $2,000,000
Deposit     $1,500,000

Stock – P&C           
Capital      $1,000,000
Surplus     $1,000,000
Deposit     $1,500,000

Mutual – P&C        
Capital      N/A
Surplus     $2,000,000
Deposit     $1,500,000

(For limited authority capital and surplus levels see 215 ILCS 5/13)

(Note: Minimum surplus to be maintained, $500,000)

Title Insurance     
Capital and Surplus          $2,000,000
Deposit                             $1,000,000

IN

IC 27-1-6-14         –           Stock

IC 27-1-6-15         –           Mutual

IC 27-13-12-2       –           HMO

IC 27-7-3-5           –           Title

IC 27-13-34-16     –           LSHMO

IA

Primary & Expansion Apps:
Greater of $5,000,000 or risk-based capital (Iowa Code 508.5 and 515.8)

KS

Stock - P&C -                              Capital   $900,000
                                                    Surplus  $600,000
                                                    Deposit  $900,000*

Stock - Life -                                Capital   $600,000
                                                    Surplus  $600,000
                                                    Deposit  $400,000
Stock - Mortgage Guaranty -      Capital  $1,000,000
                                                   Surplus $1,000,000
                                                   Deposit $1,000,000*
Stock - Title -                              Capital  $450,000
                                                   Surplus $300,000
                                                   Deposit $450,000*
Mutual - P&C -                           Capital  N/A
                                                   Surplus  $1,500,000
                                                   Deposit  $900,000*
Mutual Life -                               Capital - N/A
                                                   Surplus  $1,200,000
                                                   Deposit  $400,000
Mutual - Mortgage Guaranty -    Capital  N/A
                                                   Surplus $2,000,000
                                                   Deposit $1,000,000*

*Minimum requires “market value” of securities held for deposit.

The minimum requirements for a property company only (stock and mutual) and a casualty company only (stock and mutual) are one-half of the requirements noted above.

KY

All foreign stock life/health and property/casualty must have a minimum capital stock of $1,000,000 plus an initial free surplus of $2,000,000.
See KRS 304.3-120.

All foreign mutual life/health, property/casualty, reciprocal and Lloyd's insurers must have a minimum basic surplus of $1,000,000 plus an initial free surplus of $2,000,000. See KRS 304.3-120.

All HMOs must have a minimum capital stock of $1,000,000 plus an initial free surplus of $2,000,000. See KRS 304.38-070.

LA Please see Louisiana's State Specific Information in the State Charts for more information.
ME

Depends on line of business transacted (Title 24-A M.R.S.A. §410)

MD

Minimum capital and surplus requirements are set forth in § 4-103, 4-104, and 4-105 of the Insurance Article of the Annotated Code of Maryland and in § 19-710 of Article Health-General of the Annotated Code of Maryland.

Instructions:
See Maryland’s State-Specific Information in the State charts for more information.

MA Please see Massachusetts' State Specific Information in the State Charts for more information.
*MI

$7.5 million (MCL 500.410(2) and (3))

Instructions:
Minimum amounts required could increase at the discretion of the Director to comply with MCL 500.403.

MN

Specific to lines of business to be transacted (MN Stat §60A .07)

Instructions:
See State Website

MS

Stock Life, Accident & Health Insurance Companies and Stock Property & Casualty Insurance Companies:
Single Line – $400,000 capital and $600,000 surplus (MCA 83-21-3(2)) and MCA 83-19-31(2))
Multi-line - $600,000 capital and $900,000 surplus (MCA 83-21-3(2) and MCA 83-19-31(1) (b))

Mutual or Reciprocal Companies:
MCA 83-21-3(2) and MCA 83-19-31(1)(d)

Title Companies: $150,000 capital and $75,000 surplus (MCA 83-15-5)

Prepaid Legals: MCA 83-49-23

Fraternal Societies: MCA 83-29-29 and MCA 83-30-57

Health Maintenance Organization:  MCA 83-41-325

MO

See State Website at http://insurance.mo.gov/industry/filings/admissions/fees.php
Life: 376.280.1                                  Prepaid Dental: 354.710
P&C: 379.010.2                                HMO: 354.410.b (New)
Title: 381.062                                    HMO: 20 CSR 200-1.040(5)(B) (Existing)
Reciprocal: 379.710

MT

§ 33-2-109 and 33-2-110 (statute reference) http://leg.mt.gov/bills/mca/33/2/33-2-109.htm and
http://leg.mt.gov/bills/mca/33/2/33-2-110.htm

Life                                                        $600,000
Disability                                               $500,000
Life and disability                                  $750,000
Credit and disability                              $150,000
Property                                                $500,000
Marine                                                   $500,000
Casualty All lines, except
Workers’ Compensation                        $500,000

All lines, including
Workers’ Compensation                        $750,000
Surety                                                    $500,000
Title                                                        $500,000

Multiple Lines, two or more of
property, marine, casualty, or surety      $1,000,000

Instructions:
Amount is calculated using the table based on lines of authority approved in your domestic state.

NE

Stock §44-214
Life lines or P&C lines (double amounts if writing both Life and P&C

To begin transacting insurance, must have capital of at least $1 million and surplus of at least $1 million.

Thereafter, capital must be maintained (“unimpaired”) of at least $1 million.

Also, subject to Risk Based Capital Act.
Mutual §44-219
Life lines or P&C lines (double amounts if writing both Life and P&C)

Must maintain surplus of at least $1 million.

Also subject to Risk Based Capital Act §44-60

Title §44-1985
Same as stock except no RBC

Variable annuities §44-2202
To begin transacting variable annuity business, must have capital and surplus totaling at least $2 million.
Thereafter, surplus must be maintained of at least $1.5 million.

NV

Required Capital & Surplus – NRS 680A.120 an insurer shall possess and thereafter maintain unimpaired paid-in capital stock, if a stock insurer, or unimpaired basic surplus, if a mutual or a reciprocal insurer, and free surplus not less than 100% of the minimum required capital stock or minimum required basic surplus, and when first so authorized shall possess initial free surplus.

Stock and Foreign Mutual Insurers $500,000 minimum required capital stock.
Stock and Foreign Mutual Insurers $1,000,000 initial free surplus (all lines except title and financial guarantee).

NH

New Hampshire requires that all insurers have a minimum of $1,000,000 in combined capital and surplus. (RSA 401:4, 401:5, 405:2, and 405:4).

NJ

N.J.S.A. 17:17-6 and   17B:18-68
See New Jersey’s Capitalization Requirements of Property Casualty Insurers and the New Jersey Insurance Lines of Authority sections for additional information. 

NM

SCHEDULE I. Section 59A-5-16 NMSA 1978

Please be advised that NMSA 1978 Section 59A-5-16 Schedule I sets out minimum capital and surplus as well as deposits. The surplus required of any company applying for a Certificate of Authority before the Office of Superintendent of Insurance (OSI) is based upon the financial review, business plan and projections of the company as well as other documentation provided in their application. Generally, the OSI would look for the amount of capital that comparable licensed insurance companies have that write the premium volume for the line(s) of insurance being proposed and projected by the applying company. The OSI also looks for supported projections to keep RBC above 300% as this amount is considered the bare minimum.

NY

Dollar Amount/Code Citation
Property
https://www.dfs.ny.gov/apps_and_licensing/property_insurers/stock_pc_article41_fin_req

Life
$2,000,000 paid in capital
$4,000,000 paid in initial surplus
§ 4202 of the N.Y. Ins. Law

Health
Minimum Capital
§ 1113(a)(3)(i) of the N.Y. Ins. Law
Paid in Capital $200,000
Paid in Surplus 100,000
Total: $300,000

§ 1113 (a)(3)(i) and 3(ii) of the N.Y. Ins. Law
Paid in Capital $300,000
Paid in Surplus 150,000
Total: $450,000

Instructions:

A company may write "legal services insurance" if licensed for any of the above lines with no additional capitalization.
Note:      A higher amount of surplus may be required based upon a review of the Company’s Plan of Operations and Financial Projections

NC

Primary & Expansion Apps:

NCGS 58-7-75, NCGS 58-16-5(2)
Life and/or annuity:
$600,000 capital
$900,000 surplus

Accident and health:
$600,000 capital
$900,000 surplus

Life, accident and health:
$1,200,000 capital
$1,800,000 surplus

Mutual life, accident and health insurance company:
Must have at least $500,000 surplus.

Fire & marine:
$800,000 capital
$1,200,000 surplus

Casualty: 
$1,000,000 capital
$1,500,000 surplus

Multiple line fire and casualty:
$1,800,000 capital
$2,700,000 surplus

Mutual multiple line fire and casualty insurance company:
Must have at least $1,800,000 surplus.

NCGS 58-15-65
A reciprocal insurance exchange must have at least $2,000,000 surplus to write nonassessable policies.

Corporate Amendments App:
See North Carolina General Statute 58-7-75.

ND

Stock
Capital                             $             500,000
Surplus                            $             500,000
26.1-11-01, 26.1-05-04

Mutual
Surplus                            $          1,000,000
26.1-11-01, 26.1-12-08, 26.1-12-10

Title
Stock Company
Capital                             $             500,000
Surplus                            $             500,000

Mutual Company
Surplus:                           $             500,000
26.1-20-02

HMO

Initial net worth:             $          1,000,000
26.1-18.1-12

Prepaid Legal
To be determined on individual basis:
Working capital adequacy
Surety bond or deposit of cash or securities
26.1-19-06

OH

Life, Accident and Health companies:
$2,500,000 min.
O.R.C. 3907.05 and 3909.02;

P&C companies:
$2,500,000, 5,000,000, or $10,000,000 min.
O.R.C. 3929.011;

Title insurance companies:
$300,000 min.
O.R.C. 3953.05

OK

O.S. 36 §610 §611—all lines of business $1,500,000, except O.S. 36 §612.1, requires $2,000,000 when writing or issuing Non-Cancelable or Guaranteed Renewable Contracts.
O.S. 36 §612.2 requires $5,000,000 when writing Workers' Compensation.

OR

Generally:  $2,500,000 capital or surplus, or any combination thereof (ORS 731.554(1)) Must comply with ORS 733.580, investment of required capitalization.

Workers’ compensation: $5,000,000 (ORS 731.554(2))

Mortgage:  $4,000,000
(ORS 731.554(3))

Home protection:  
$250,000 - 1,000,000
(ORS 731.554(4))

Title:  $2,500,000
(ORS 731.562)

Healthcare Service Contractors 
$2,500,000
(ORS 750.045)

Limited Healthcare Service Contractors (complementary, dental or vision only) $1,000,000
(ORS 750.045(3) (a))

PA

Dollar amount is specific to line(s) of business as defined by:

Life, Property& Casualty
40 P.S. § 386
Title: 40 P.S. § 910-5

PR

§ 3.090 of the Insurance Code of Puerto Rico-Funds required from insurers
‘’To qualify to receive the authority to transact any kind of insurance, an insurer must have and hold paid-in capital or surplus stock in an amount which shall not be less than what appears in the applicable portion of the following schedule:
                                        Stock, mutual,         Reciprocals                
                                        or cooperative         or Lloyd's Surplus                     
                                        insurers Capital       required            
                                        or surplus              
          
                                        required                         
Kind of Insurance           surplus
                                                                                                   
Life                                  $1,500,000               Not applicable    
Life and disability            $2,500,000               Not applicable    
Disability                         $1,000,000               $1,000,000     
Property                          $2.000,000               $2,000,000      
Agricultural only              Must qualify for                            
                                        property                                 
                                        insurance                                
Marine and Transport      $1,500,000              $1,500,000      
Casualty                          $2,000,000              $2,000,000      
Vehicle only                     $1,500,000              $1,500,000      
Surety and fidelity            $1,500,000              $1,500,000      
Title                                  $1,500,000              Not applicable    
Mortgage loans                $3,000,000              Not applicable    
All insurance except life   $3,000,000              $3,000,000      
and mortgage loans                                                                

The Commissioner may increase the aforementioned requirements as may be determined by the economic condition of the country up to the amount he deems necessary for the adequate protection of the interests of the insured and the creditors of the insurer.’’

For more information see state specific requirements.

RI

Expansion App:
Rhode Island General Law (R.I. Gen. Law) §27-2-5 stipulates that a foreign stock life and health (L&H) or property and casualty (P&C) company have and maintain at least $1,000,000 of paid-in capital stock and $2,000,000 of surplus; and that a foreign mutual L&H or P&C company must have at least $3,000,000 of total surplus.
Note: Pursuant to R.I. Gen. Laws §27-2-17(a), foreign company minimum capital and surplus obligations are retaliatory if the company’s state of domicile would require a R.I. insurance company to have greater capital and surplus than that required by §27-2-5.

SC Statutory requirements outlined in S.C. Code Ann. §38-9-10 (stock companies) or 38-9-20 (mutual companies) or the statutory requirements of the applicant's home state, whichever is greater.
SD

SDCL 58-6-23
See State Specific Information

TN

Property and Casualty
$1 Million in capital stock and $1 million in paid in surplus pursuant to TCA 56-2-115

Life
$1 Million in capital stock and $1 million in paid in surplus pursuant to TCA 56-2-114 (a) and TCA 56-2-115

Mutual
$2 Million in surplus pursuant to TCA 56-2-114 (a) and TCA 56-2-115

Title
$100,000 Capital stock and aggregate capital stock and surplus of $500,000, pursuant to TCA 56-35-112(a)

TX

Property and Casualty
$2.5 Million in capital stock and $2.5 Million in paid in surplus (Chapter 822.054, Texas Insurance Code)
Life and Health
$700,000 in capital stock and $700,000 in paid in surplus (Chapter 841.054, Texas Insurance Code)
Title
$1,000,000 in capital stock and $1,000,000 in paid in surplus (Chapter 2551.053, Texas Insurance Code)

*UT

Life, Accident, Health and Property and Casualty Insurers: 

See Utah Code 31A-5-211

VT

Traditional Stock Co.
Capital $2,000,000
Surplus $3,000,000
Mutual Co.
Surplus $5,000,000

VA

Stock Insurers
Capital Stock $1,000,000
Surplus $3,000,000
(§ 38.2-1028)
Assessable Mutual Insurers
Surplus $1,600,000
(§ 38.2-1029)
Nonassessable Mutual Insurers
Surplus $4,000,000
(§ 38.2-1030)

(§ 38.2-1030)
Assessable Reciprocals
Surplus $1,600,000
(§ 38.2-1206)
Nonassessable Reciprocals
Surplus $4,000,000
(§ 38.2-1213)

For initial licensing purposes, an applicant must also have an additional amount of surplus (excluding capital stock) of not less than $500,000 (Virginia Administrative Letter 2002-7).

*WA

Specific to the lines of business to be transacted (RCW §48.05.340).

Instructions:
See Washington's State-Specific Information.

WV Fully paid in capital stock, if a stock insurer, or surplus, if a mutual insurer, of at least one million dollars. In addition, each insurer shall have and maintain additional surplus funds of at least one million dollars (W. Va. Code §33-3-5b)
WI

Minimum Capital and Surplus required is the greater of $3 million or percentage of prior 12 months premium. See Compulsory and Security Surplus Calculation Form from state web-site. Ref: 618.21(1)(a), 611.19, 623.11, 623.12 Wis Stats, Ins 51.80 Wis Adm Code

WY W.S. 26-3-108

 

 

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