Section 4219. Limitation on accumulation of surplus of life insurance companies

(a) (1)  Any  domestic  mutual  life  insurance  company  may  maintain  a  surplus, above all of its reserves and liabilities required
  or specifically permitted by this chapter, not exceeding the greatest of
  (A) eight hundred fifty thousand dollars, or  (B)  ten  percent  of  its
  policy reserves and policy liabilities, or (C) ten percent of its policy
  reserves  and  policy  liabilities plus (i) the product of three and its
  authorized control level RBC as determined in  accordance  with  section
  one  thousand  three  hundred  twenty-two of this chapter minus (ii) the
  asset valuation reserve as reported in its annual statement, or (D)  the
  minimum  amount  of capital and surplus required by law of another state
  in which the company is authorized to do business.
    (2) Any domestic stock life insurance  company  issuing  participating
  policies  only  or  both participating and non-participating policies or
  contracts in accordance with subsection (f) of section four thousand two
  hundred  thirty-one  of  this  article,  may  maintain  a  participating
  policyholders'  surplus,  above  all  of  its  reserves  and liabilities
  arising  out  of  participating  policies,  required   or   specifically
  permitted  by the provisions of this chapter, not exceeding the greatest
  of (A) two hundred fifty thousand dollars, or (B) ten  percent  of  such
  policy  reserves and such policy liabilities, or (C) ten percent of such
  policy reserves and  policy  liabilities  plus  the  amount  derived  by
  prorating,  based  upon  the  ratio  of participating assets to admitted
  assets, (i) the product of three and its authorized control level RBC as
  determined  in  accordance  with  section  one  thousand  three  hundred
  twenty-two  of  this  chapter  minus (ii) the asset valuation reserve as
  reported in its annual statement.
    (3) In this section, "policy reserves and policy liabilities" includes
  reserves  and  liabilities  on  outstanding  life  insurance   policies,
  accident  and health insurance policies and annuity contracts, contracts
  supplemental thereto or in connection therewith or  provisions  included
  therein  insuring  against  disability  or against death by accident and
  including liabilities required under optional modes  of  settlement  and
  for  dividends  left  on  deposit,  after deducting the net value of its
  risks reinsured by other solvent assuming insurers. Policy reserves  and
  liabilities  shall  also  include  the  reserves  and liabilities of the
  domestic life insurance company and the policy reserves and  liabilities
  of  any  and all wholly-owned subsidiary life insurance companies of the
  domestic life insurance company, to the extent  that  the  surpluses  of
  such  subsidiary life insurance companies are included in the surplus of
  the domestic life insurance company  for  purposes  of  determining  the
  limit pursuant to this section.
    (4) In the case of a mutual life insurance company that is reorganized
  into  a  stock life insurance company under section seven thousand three
  hundred twelve of this chapter, the limitation  contained  in  paragraph
  one  of  this  subsection  shall  not  affect  that part of the existing
  surplus of such reorganized company that is allocated  to  participating
  policies  and contracts of the mutual life insurance company which is in
  excess of such limitation on the effective date of  the  reorganization,
  provided such excess, in addition to any further accretions occurring in
  the  normal  course of business, shall be equitably distributed to these
  participating policyholders and contractholders over  a  period  not  to
  exceed ten years.
    (b) The superintendent may, for good cause shown, by order, permit any
  such  company  to maintain a surplus in excess of the maximum prescribed
  by subsection (a) hereof, for a specified period, not exceeding one year
  under any one order. The superintendent shall state in  such  order  his

  reasons  therefor  and  shall  cause  a statement of such order and such
  reasons to be published in his next annual report to the legislature.
    (c)  This  section shall not apply to any stock life insurance company
  doing exclusively a non-participating business.