§431:5-102  Impairment of surplus.

(a) (1)  A domestic mutual insurer's surplus shall bedeemed to be impaired if its qualified assets are less than its liabilities,plus the amount of any surplus required by this code for the classes ofinsurance authorized to be transacted.

(2)  If a domestic mutual insurer's surplus is deemedto be impaired, the commissioner shall at once ascertain the amount of thedeficiency and serve notice upon the insurer to cure the deficiency withinninety days after service of such notice.

(b)  The insurer shall cure the deficiency incash or in assets eligible under this code for the investment of the insurer'sfunds.

(c)  If the deficiency is not cured and proofthereof filed with the commissioner within such ninety-day period, the insurershall be deemed insolvent and shall be proceeded against as authorized byarticle 15.

(d)  If the deficiency is not cured the insurershall not issue or deliver any policy after the expiration of such ninety-dayperiod.  Any officer or director who violates or knowingly permits theviolation of this provision shall be fined not less than $500 nor more than$10,000 for each violation. [L 1987, c 347, pt of §2]