§ 27-5-25. Use of special reserve fund to replace capital stock.
If any amount greater than a sum equal to one half (½) of its capital stock shall have been deposited with the commissioner by a fire insurance company under the provisions of this chapter, the commissioner shall retain of those securities an amount equal to one half (½) of what amount he or she shall hold in excess of a sum equal to one half (½) of the capital stock, and the commissioner shall transfer the balance to the company, and the amount transferred to the company shall from the time of the transfer, provided the amount shall not be less than two hundred thousand dollars ($200,000), constitute the capital stock of the company for the further conduct of its business, and the retained securities shall be regarded as the special reserve fund of the company, to which additions may be made, and shall be held in the same manner, and for the same purpose, and under the same conditions as the original special reserve fund of the company was held.
History of Section.P.L. 1907, ch. 1438, § 8; G.L. 1909, ch. 219, § 33; G.L. 1923, ch. 255, § 33; G.L. 1938, ch. 150, § 32; impl. am. P.L. 1953, ch. 3174, § 5; G.L. 1956, § 27-5-25.
Structure Rhode Island General Laws
Chapter 27-5 - Fire Insurance Policies and Reserves
Section 27-5-1. - Standard fire insurance policy.
Section 27-5-2. - Compliance with standard policy required.
Section 27-5-3. - Form of standard policy.
Section 27-5-3.1. - Exclusion — Nuclear damage.
Section 27-5-3.2. - Property insurance.
Section 27-5-3.3. - Resident agent — Banks.
Section 27-5-3.4. - Cancellation or nonrenewal of standard fire insurance policy.
Section 27-5-3.5. - Earthquake coverage endorsement for property insurance.
Section 27-5-3.6. - Notice concerning flood insurance.
Section 27-5-3.8. - Rhode Island commission on hurricane loss projection methodology.
Section 27-5-3.9. - Vacant property.
Section 27-5-4. - Items shown at head of policy.
Section 27-5-5. - Inclusion of regulations of mutual insurer.
Section 27-5-6. - Binders and temporary insurance.
Section 27-5-6.1. - Notice concerning single interest hazard insurance.
Section 27-5-6.2. - Escrow accounts for insurance premiums.
Section 27-5-7. - Combination standard form.
Section 27-5-8. - Supplemental contract forms.
Section 27-5-9. - Standard form not required for reinsurance.
Section 27-5-9.1. - Simplified comprehensive policies of insurance.
Section 27-5-10. - Penalty for nonconforming policy — Validity.
Section 27-5-11. - Enforcement of standard policy requirements.
Section 27-5-12. - Declination of premium notes by mutual companies — Provision as to liability.
Section 27-5-13. - Mutual membership not acquired by reinsurance.
Section 27-5-14. - Reinsurance by mutual insurers — Agreements with policyholders.
Section 27-5-15. - Power to create guaranty surplus and special reserve funds.
Section 27-5-16. - Resolution to establish surplus and reserve funds — Certification of funds.
Section 27-5-17. - Restrictions on dividends — Payments into surplus and reserve funds.
Section 27-5-18. - Computation of profits.
Section 27-5-19. - Certification that funds equal capital stock — Subsequent additions.
Section 27-5-20. - Investment of guaranty surplus fund — Liability to payment of losses.
Section 27-5-21. - Deposit of special reserve fund.
Section 27-5-22. - Application of special reserve fund to protection of policyholders.
Section 27-5-23. - Annual statement of amounts of funds.
Section 27-5-24. - Maintenance of surplus fund equal to reserve fund.
Section 27-5-25. - Use of special reserve fund to replace capital stock.
Section 27-5-26. - Physical assets for protection of policyholders.
Section 27-5-27. - Making up of impairments of capital.
Section 27-5-28. - Maximum single risk insured.
Section 27-5-29. - Statement on policy as to surplus and reserve funds.
Section 27-5-30. - Funds established under prior law.
Section 27-5-31. - Termination of surplus and reserve fund method — Return of special reserve fund.