Adequacy Of Surplus

TITLE 41 INSURANCE CHAPTER 38 ACQUISITIONS OF CONTROL AND INSURANCE HOLDING COMPANY SYSTEMS 41-3811. Adequacy of surplus. For purposes of this chapter, in determining whether an insurer’s surplus regarding policyholders is reasonable in relation to the insurer’s outstanding liabilities and adequate to meet 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 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 investment portfolio; (8)  The surplus regarding policyholders maintained by other comparable insurers; (9)  The adequacy of the insurer’s reserves; (10) The quality and liquidity of investments in affiliates; the director may treat any investment in an affiliate as a disallowed asset for purposes of determining the adequacy of surplus regarding policyholders whenever in the judgment of the director the investment so warrants; and (11) The quality of the insurer’s earnings and the extent to which the reported earnings include extraordinary items.