§431:4-321  Nonassessable policies. (a)  A domestic mutual insurer, after it has established a surplus not less inamount than the minimum capital funds required of a domestic stock insurer totransact like classes of insurance, may extinguish the contingent liability ofits members to assessment and omit provisions imposing contingent liability inall policies currently issued.

(b)  When the surplus has been so establishedand the commissioner has so ascertained, the commissioner shall issue to theinsurer, at its request, the commissioner's certificate authorizing theextinguishment of the contingent liability of its members and the issuance ofpolicies free therefrom.

(c)  While it maintains surplus funds in amountnot less than the minimum paid-up capital stock and surplus required of adomestic stock insurer authorized to transact like classes of insurance, aforeign or alien mutual insurer may, if consistent with its charter and thelaws of its domicile, issue nonassessable policies covering subjects located,resident, or to be performed in this State. [L 1987, c 347, pt of §2]