Section 7004. Required capital and surplus as regards policyholders

(a)
  No pure captive insurance company or  group  captive  insurance  company
  shall  be  issued  a  license  unless  it  shall  possess and thereafter
  maintain unimpaired paid-in capital and surplus as regards policyholders
  of:
    (1) in the case of a pure captive insurance company incorporated as  a
  stock insurer, not less than two hundred fifty thousand dollars of total
  surplus  as regards policyholders, of which one hundred thousand dollars
  shall represent paid-in capital;
    (2) in the case of a pure captive insurance company incorporated as  a
  mutual  insurer,  not  less  than  two hundred fifty thousand dollars of
  total surplus as regards to policyholders;
    (3) in the case of a group captive insurance company incorporated as a
  stock insurer, not less than five  hundred  thousand  dollars  of  total
  surplus  as regards policyholders, of which two hundred thousand dollars
  shall represent paid-in capital; and
    (4)  in the case of a group captive insurance company incorporated  as
  a  mutual  insurer, not less than five hundred thousand dollars of total
  surplus as regards policyholders.
    (b) The minimum capital  and  surplus  to  policyholders  required  in
  subsection (a) of this section shall be in the form of:
    (1) cash;
    (2)  minimum  capital  or  surplus to policyholders investments of the
  type specified in paragraphs one and two of subsection  (b)  of  section
  one thousand four hundred two of this chapter;  or
    (3)  an  irrevocable  letter  of  credit,  in  a  form approved by the
  superintendent,  naming  the  superintendent  as  beneficiary  for   the
  security  of the captive insurance company's policyholders and issued by
  a bank acceptable to the superintendent.
    (c)  The superintendent may prescribe additional capital  and  surplus
  to  policyholders  based  upon  the type, volume and nature of insurance
  business  transacted.     Any  additional   capital   and   surplus   to
  policyholders  so  required  shall  be  in  the  form  as  set  forth in
  subsection (b) of this section.