The director shall not authorize an applicant to sell prepaid legal insurance contracts within this state unless the applicant:
1. Possesses and thereafter maintains unimpaired capital of at least six hundred thousand dollars, except that an applicant to sell prepaid legal insurance contracts that only provide legal services plans related to the lawful use of firearms shall possess and maintain unimpaired capital of at least fifty thousand dollars.
2. Possesses and thereafter maintains surplus funds in an amount equal to at least fifty percent of the capital requirement prescribed in paragraph 1 of this section.
3. Possesses and thereafter maintains an unearned premium reserve that meets the requirements prescribed in section 20-506.