§431:4-421  Nonassessable policies. 
(a)  If a reciprocal insurer has a surplus of assets over all liabilities at
least equal to the minimum paid-up capital stock and surplus required of a
domestic stock insurer authorized to transact like classes of insurance, upon
application of the attorney and as approved by the subscribers' advisory
committee, the commissioner shall issue the commissioner's certificate
authorizing the insurer to extinguish the contingent liability of subscribers
under its policies then in force in this State, and to omit provisions imposing
contingent liability of subscribers under its policies then in force in this
State, and to omit provisions imposing contingent liability in all policies
delivered or issued for delivery in this State for so long as the surplus
remains unimpaired.



(b)  Upon impairment of the surplus, the
commissioner shall forthwith revoke the certificate.  No policy shall
thereafter be issued or renewed without providing for the contingent assessment
liability of subscribers.



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