§431:4-421  Nonassessable policies. (a)  If a reciprocal insurer has a surplus of assets over all liabilities atleast equal to the minimum paid-up capital stock and surplus required of adomestic stock insurer authorized to transact like classes of insurance, uponapplication of the attorney and as approved by the subscribers' advisorycommittee, the commissioner shall issue the commissioner's certificateauthorizing the insurer to extinguish the contingent liability of subscribersunder its policies then in force in this State, and to omit provisions imposingcontingent liability of subscribers under its policies then in force in thisState, and to omit provisions imposing contingent liability in all policiesdelivered or issued for delivery in this State for so long as the surplusremains unimpaired.

(b)  Upon impairment of the surplus, thecommissioner shall forthwith revoke the certificate.  No policy shallthereafter be issued or renewed without providing for the contingent assessmentliability of subscribers.

(c)  The commissioner shall not authorize adomestic reciprocal insurer to extinguish the contingent liability of any ofits subscribers or in any of its policies to be issued, unless it qualifies toand does extinguish the liability of all its subscribers and in all suchpolicies for all classes of insurance transacted by it.  Except, if required bythe laws of another state in which the insurer is transacting insurance as anauthorized insurer, the insurer may issue policies providing for the contingentliability of such of its subscribers as may acquire such policies in the state,and need not extinguish the contingent liability applicable to policiestheretofore in force in the state. [L 1987, c 347, pt of §2]