§ 6620. Non-assessable policies; advance premium corporations. (a) Any
advance premium corporation may issue insurance contracts which do not
impose any liability upon members for any assessments in addition to the
advance premium paid upon compliance with the following requirements:

(1) If authorized to issue non-assessable policies prior to the first
day of January, nineteen hundred eighty-seven, such a corporation may
issue such contracts if:

(A) It shall have and at all times maintain a surplus to policyholders
of at least one hundred thousand dollars.

(B) It shall maintain a deposit of an amount equal to its unearned
premium reserves but not less than one hundred thousand dollars nor more
than two hundred fifty thousand dollars, subject to the provisions of
article thirteen of this chapter.

(2) If authorized to issue non-assessable policies subsequent to the
first day of January, nineteen hundred eighty-seven, such a corporation
may issue such contracts if:

(A) It shall maintain a surplus as determined from its latest filed
statement, which together with its unearned premium reserve from its
latest filed statement is at least equal to the surplus to policyholders
required to be maintained by a domestic stock property/casualty
insurance company licensed to write the same kind or kinds of insurance.

(B) It shall maintain a deposit of five hundred thousand dollars
subject to the provisions of article thirteen of this chapter.

(C) It shall have submitted a copy of its proposed non-assessable
policy or policies for approval of the superintendent, and shall have
obtained his approval.

(b) Every policy issued by any such corporation shall clearly state
whether or not the holder of the policy is subject to a liability for
assessment.

(c) Any surplus or deposit required for the purposes specified in this
section shall be inclusive of any surplus required by any other sections
of this chapter.