§ 23-69-139 — Assessment of stockholders or members

(a) Any insurer receiving the Insurance Commissioner's notice mentioned in § 23-69-138(a) : (1) (A) If a stock insurer, by resolution of its board of directors and subject to any limitations upon assessment contained in its articles of incorporation, may assess its stockholders for amounts necessary to cure the deficiency and provide the insurer with a reasonable amount or surplus in addition. (B) If any stockholder fails to pay a lawful assessment after notice given to him or her in person or by advertisement in such time and manner as approved by the commissioner, the insurer may require the return of the original certificate of stock held by the stockholder, and in cancellation and in lieu thereof issue a new certificate for such number of shares as the stockholder may then be entitled to, upon the basis of the stockholder's proportionate interest in the amount of the insurer's capital stock as determined by the commissioner to be remaining at the time of determination of amount of impairment under § 23-69-138 , after deducting from the proportionate interest the amount of the unpaid assessment. (C) The insurer may pay for or issue fractional shares under this subsection; or (2) If a mutual insurer, shall levy such an assessment upon members as is provided for under § 23-69-124 . (b) Neither this section nor § 23-69-138 shall be deemed to prohibit the insurer from curing any deficiency through any lawful means other than those referred to in those sections.

Legislative History

Acts 1959, No. 148, § 494; A.S.A. 1947, § 66-4242.