1. No captive insurance company shall be issued a license unless it shall possess and thereafter maintain unimpaired paid-in capital and surplus of:
(1) In the case of a pure captive insurance company, not less than two hundred fifty thousand dollars;
(2) In the case of an association captive insurance company, not less than five hundred thousand dollars;
(3) In the case of an industrial insured captive insurance company, not less than five hundred thousand dollars; and
(4) In the case of a sponsored captive insurance company, not less than five hundred thousand dollars.
2. The director may prescribe additional capital and surplus based upon the type, volume, and nature of insurance business transacted.
3. Capital and surplus may be in the form of cash or an irrevocable letter of credit issued by a bank chartered by the state of Missouri or a member bank of the Federal Reserve System, and approved by the director.