No certificate of authority, other than a renewal certificate of authority, shall be issued to the attorney within three years from and after the time when the exchange commences business as an insurer nor within three years from and after the time it is first organized unless assets equal to the sum of its liabilities and the minimum surplus required by this chapter are maintained in cash or one or more of the following:
(a) Securities specified in Sections 1170 to 1175 inclusive;
(b) Bonds specified in Section 1176, if such bonds are legal for investment of savings banks in this State;
(c) Such securities specified in Sections 1178 to 1202, inclusive, as are legal for investment of savings banks in this State;
(d) Premiums in course of collection, or agents’ balances representing premiums, on policies effected not more than 90 days prior to the date on which such premiums or balances are valued for the purposes of this section, and earned service fees receivable, not over 90 days due, and evidences of debt representing such assets;
(e) Interest accrued and dividends declared, receivable on any of the assets specified in subsections (a) to (d), inclusive, no part of which interest or dividends has been due in excess of one year;
(f) Amount of reinsurance recoverable from admitted insurers.
(Added by Stats. 1951, Ch. 544.)
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