Rhode Island § 27-5-27 § 27-5-27. Making up of impairments of capital.

Rhode Island Statutes

§ 27-5-27 — § 27-5-27. Making up of impairments of capital.

Rhode Island·Title 27 Insurance·Ch. 27-5 Fire Insurance Policies and Reserves

§ 27-5-27. Making up of impairments of capital.
If, at any time after a special reserve fund has been accumulated by any company,
            the directors of the company shall present evidence satisfactory to the insurance
            commissioner that the capital of the company has become impaired, the commissioner
            shall order the directors to call upon the stockholders to make up that impairment,
            and the board of directors may then require the necessary payment by the stockholders
            to make good the whole of that impairment, or they may apply for that purpose the
            whole or any part of the special reserve fund and require of the stockholders payment
            of any amoun

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§ 27-5-27. Making up of impairments of capital.

If, at any time after a special reserve fund has been accumulated by any company, the directors of the company shall present evidence satisfactory to the insurance commissioner that the capital of the company has become impaired, the commissioner shall order the directors to call upon the stockholders to make up that impairment, and the board of directors may then require the necessary payment by the stockholders to make good the whole of that impairment, or they may apply for that purpose the whole or any part of the special reserve fund and require of the stockholders payment of any amount as may be necessary to make up the balance of that impairment not made up out of the special reserve fund. The stock of every stockholder shall be pledged and liable for the amount assessed upon the stockholder to make up that impairment either in whole or in part, and in case any stockholder refuses to pay that assessment the stock standing in the stockholder's name may be sold at public auction after thirty (30) days' notice in any manner as the directors may provide. If the board of directors elects to make good that impairment or any part of the impairment out of the special reserve fund, the insurance commissioner shall, upon request of the board, transfer to the company so much of the special reserve fund as is necessary for the purpose.

Rhode Island § 27-5-27 (§ 27-5-27. Making up of impairments of capital.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

P.L. 1907, ch. 1438, § 9; G.L. 1909, ch. 219, § 34; P.L. 1919, ch. 1783, § 1; G.L. 1923, ch. 255, § 34; G.L. 1938, ch. 150, § 33; impl. am. P.L. 1953, ch. 3174, § 5; G.L. 1956, § 27-5-27.