(a) Before a domestic mutual insurance company other than a mutual life insurance company may issue a nonassessable policy, the company shall furnish the Insurance Commissioner a certified copy of the resolution of the Board of Directors authorizing the issuance of nonassessable policies, and shall certify that the company possesses surplus as required in section 806¹ and that the company is otherwise qualified under its charter and by-laws. When the Insurance Commissioner is satisfied that the company has the above surplus and other qualifications, the commissioner shall issue to such company a certificate of authority for the issuance of nonassessable policies. This certificate shall continue in effect until rescinded or revoked as provided in this section.

(b) If a resolution of the board of directors authorizing the issuance of nonassessable policies is modified, the company shall furnish the Insurance Commissioner a certified copy of the modified resolution within fifteen (15) days after the end of the month in which the modified resolution was adopted. If a resolution authorizing the issuance of nonassessable policies is rescinded, the company shall file with the Insurance Commissioner an application for termination of authority to issue nonassessable policies within fifteen (15) days after the end of the month in which the resolution was rescinded. An application for termination of authority to issue nonassessable policies shall include a certified copy of the rescinding resolution and any other information the commissioner may require.

(c) The Insurance Commissioner may, after hearing, revoke the certificate of authority to issue nonassessable policies if the commissioner finds that the company does not have the surplus as provided in section 806, or that the company is no longer qualified to issue nonassessable policies.

(d) No company may issue a nonassessable policy after:

(e) A nonassessable policy issued while a company has a valid certificate of authority to issue nonassessable policies shall remain nonassessable under all conditions, including, but not limited to, the revocation of the company's certificate of authority to issue nonassessable policies, any surplus deficiency of the company, and the liquidation or rehabilitation of the company.