§ 26-24-143 — Impairment of capital or assets; assessment of stockholders or members

Wyoming § 26-24-143

• Jurisdiction: Wyoming
• Title 26: Insurance Code
• Ch. 24: ORGANIZATION AND CORPORATE PROCEDURES OF LEGAL

Text

(a) If an insurer is a stock insurer and receives the
notice specified in W.S. 26-24-141(a) and to the extent that
stockholders are subject to assessment under the insurer's
articles of incorporation, by resolution of its board of
directors, the insurer may assess its stockholders for amounts
necessary to cure the deficiency and provide the insurer with a
reasonable amount of additional surplus. If any stockholder
fails to pay a lawful assessment after notice given to him in
person, or by mail addressed to him at his address last of
record with the insurer, or in any other manner the commissioner
approves, the insurer may cancel and require the return of the
certificates of stock then held by the stockholder. The insurer
shall issue new certificates for that number of shares as the
stockholder is then entitled to upon the basis of the
stockholder's proportionate interest in the amount of the
insurer's capital stock as the commissioner determines to be
remaining unimpaired at the time of the determination of the
amount of impairment under W.S. 26-24-141, after deducting from
the proportionate interest the amount of the unpaid assessment.
The insurer may pay for or issue fractional shares under this
subsection.
(b) If an insurer is a mutual insurer and receives the
notice specified in W.S. 26-24-141(a), it may levy an assessment
upon members as provided in W.S. 26-24-136.
(c) Neither this section nor W.S. 26-24-141 prohibits the
insurer from curing any deficiency through any lawful means.