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No license or renewal license under this chapter shall be issued to a sponsor other than an insurer as defined herein, unless such sponsor:
(a) Shall possess as minimum capital and thereafter maintain a minimum balance of at least five thousand dollars ($5,000.00) in its capital accounts as shown in its annual report to the commissioner. Provided, the commissioner shall, in his discretion, require such higher amounts of capital as he deems necessary for the protection of the public;
(b) Shall deposit with the commissioner securities acceptable to the commissioner in the amount of twenty-five thousand dollars ($25,000.00), or shall file with the commissioner a bond to be approved by the commissioner and made payable to the commissioner or his successors in office executed by such applicant as principal and by a corporate surety authorized to do business in this state in the penal sum of twenty-five thousand dollars ($25,000.00), conditioned that the sponsor will conduct his business in accordance with the provisions of this chapter and the laws of this state, and that the sponsor will properly account for all moneys collected in connection therewith. Such bond shall remain in full force and effect until the surety is released from liability by the commissioner or until the bond is cancelled by the surety and no such bond shall be cancelled or terminated unless prior to such cancellation or termination thirty (30) days' written notice is filed with the commissioner; and
(c) Shall maintain at all times a surplus, after deduction of reserves and exclusive of capital, of not less than twice the amount of capital required by paragraph (a), provided, however, in no case shall such surplus required to be maintained exceed ten thousand dollars ($10,000.00). If at any time the surplus of such sponsor shall be less than the surplus set out in this paragraph, such sponsor shall be considered impaired; and it shall be the duty of the secretary-treasurer, directors and other proper officers of such sponsor to report any such impairment of surplus to the commissioner of insurance of this state in writing within ten (10) days after such impairment occurs. When any such impairment is reported, or if the commissioner of insurance should otherwise gain knowledge of the fact that the surplus of any such sponsor has been impaired, the commissioner shall forthwith suspend the certificate of authority or license of such sponsor to do business in this state until such sponsor shall raise or increase its surplus to the amount equal to that required herein.
Cite this article: FindLaw.com - Mississippi Code Title 83. Insurance § 83-49-23. Capitalization of sponsors; securities deposit or bond - last updated January 01, 2018 | https://codes.findlaw.com/ms/title-83-insurance/ms-code-sect-83-49-23/
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