§ 8021. Limitations on accumulation of surplus of mutual holding
companies. (a) A mutual holding company may maintain (1) a non-insurance
surplus not exceeding the aggregate capital and surplus of its insurance
subsidiaries and (2) aggregate capital and surplus of its insurance
subsidiaries not exceeding the surplus limit of its insurance
subsidiaries, unless otherwise approved by the superintendent.

(b) As used in this section, the following terms shall have the
following meanings:

(1) "Non-insurance surplus" means the mutual holding company's net
worth, determined in accordance with generally accepted accounting
principles on a consolidated basis, excluding the portion thereof
derived from its interest in its insurance subsidiaries.

(2) "Insurance subsidiary" means a subsidiary of the mutual holding
company that is a domestic insurer, a foreign insurer, an alien insurer
or (notwithstanding its exemption from this chapter) a health
maintenance organization.

(3) "Aggregate capital and surplus" of a mutual holding company's
insurance subsidiaries means the sum of:

(A) for each subsidiary that is a life insurance company and is not a
subsidiary of another life insurance company, its statutory capital and
surplus;

(B) for each subsidiary that is an insurance company other than a life
insurance company, a health maintenance organization or a subsidiary of
another insurance subsidiary, its statutory capital and surplus; and

(C) for each subsidiary that is a health maintenance organization and
is not a subsidiary of an insurance subsidiary, thirty-five percent of
its net premium written in the preceding calendar year.

(4) "Surplus limit" of a mutual holding company's insurance
subsidiaries means the aggregate of:

(A) for each subsidiary that is a life insurance company and is not a
subsidiary of another life insurance company, the greater of (i) eight
hundred fifty thousand dollars, or (ii) ten percent of its policy
reserves and policy liabilities, or (iii) ten percent of the policy
reserves and policy liabilities of such life insurance company and of
all subsidiaries of such company that are insurance companies, plus (x)
the product of three and the authorized control level RBC of such life
insurance company as determined in accordance with section one thousand
three hundred twenty-two of this chapter or corresponding provisions of
the law of its state of domicile, plus (y) for each subsidiary of such
domestic life insurance company that is a health maintenance
organization, thirty-five percent of its net premium written in the
preceding calendar year, minus (z) the asset valuation reserves of such
life insurance company and of all subsidiaries of such company that are
life insurance companies, or (iv) the minimum amount of capital and
surplus required by the law of another state in which such life
insurance company is authorized to do business, all as determined in
accordance with accounting practices prescribed or permitted by the
superintendent, in the case of domestic insurers, or the principal
regulator of any insurance subsidiary that is not a domestic insurer;

(B) for each subsidiary that is an insurance company other than a life
insurance company, a health maintenance organization or a subsidiary of
another insurance subsidiary, its statutory capital and surplus; and

(C) for each subsidiary that is a health maintenance organization and
is not a subsidiary of an insurance subsidiary, thirty-five percent of
its net premium written in the preceding calendar year;

(D) The superintendent may, for good cause shown, by order, permit
such mutual holding company to maintain a surplus in excess of the
maximum prescribed by subsection (a) of this section, for a specified
period, not exceeding one year under any one order. The superintendent
shall state in such order the reasons therefor and shall cause a
statement of such order and such reasons to be published in the next
annual report of the superintendent to the legislature.