§ 1310 — Impairment of a stock insurer

§ 1310. Impairment of a stock insurer. (a) Whenever the superintendent\nfinds from a financial statement, or a report on examination, of any\ndomestic stock insurer that (i) the admitted assets are less than the\naggregate amount of its liabilities and outstanding capital stock or\n(ii) the admitted assets of any such insurer which is required to\nmaintain a minimum surplus to policyholders are less than the aggregate\namount of its liabilities and the amount of its minimum surplus to\npolicyholders, he shall determine the amount of the impairment and order\nthe insurer to eliminate the impairment within such period as he\ndesignates, not more than ninety days from the service of the order. He\nmay also order the insurer not to issue any new policies while the\nimpairment exists. If the impairment as determined by the provisions of\nitem (i) hereof equals or exceeds twenty-five percent of the insurer's\noutstanding capital stock, or as determined by the provisions of item\n(i) or (ii) hereof is such that the insurer does not have the minimum\ncapital or minimum surplus to policyholders required by this chapter,\nand if at the expiration of such designated period, such insurer has not\nsatisfied the superintendent that such impairment has been eliminated,\nthe superintendent may proceed against the insurer pursuant to the\nprovisions of article seventy-four of this chapter on the ground that\nits condition is such that its further transaction of business will be\nhazardous to its policyholders or its creditors or the public.\n (b) If any foreign stock insurer authorized to do business in this\nstate is found to be impaired, the superintendent may, after notice and\nhearing, order such insurer not to issue during such time as he\nprescribes any new policies in this state, and may, after notice and\nhearing, revoke its license to transact business in this state.\n