§431:4-318  Accrual of liability.  (a) If at any time the assets of a domestic mutual insurer are less than itsliabilities and the minimum surplus, if any, required of it by this code asprerequisite for continuance of its certificate of authority, and thedeficiency is not cured from other sources, its directors may, if approved bythe commissioner, make an assessment only on its members who at any time withinthe twelve months immediately preceding the date assessment was authorized byits directors held policies providing for contingent liability.

(b)  The assessment shall be for such an amountof money as is required in the opinion of the commissioner, to render theinsurer fully solvent, and provide a reasonable amount of working capital abovethe minimum amount of surplus, but the working capital so provided shall notexceed five per cent of the insurer's liabilities as of the date on which theamount of deficiency was determined.

(c)  A member's proportionate part of anyassessment shall be computed by applying to the premium earned within thetwelve-month period on the member's contingently liable policy or policies theratio of the total assessment to the total premium earned during the period onall contingently liable policies which are subject to the assessment.

(d)  No member shall have an offset against anyassessment for which the member is liable, on account of any claim for unearnedpremium or losses payable. [L 1987, c 347, pt of §2]