§431:5-103  Impairment of reciprocal'ssurplus.

(a) (1)  A domestic reciprocal insurer's surplusshall be deemed to be impaired if its qualified assets are at any timeinsufficient to discharge its liabilities other than any liability on accountof funds contributed by the attorney or other parties, and insufficient tomaintain the surplus required for the classes of insurance it is authorized totransact.

(2)  Upon such impairment of a reciprocal insurer'ssurplus, its attorney shall forthwith levy an assessment upon subscribers madesubject to assessment by the terms of their policies for the amount needed tomake up the deficiency.

(3)  For the purposes of a determination of impairmentof a reciprocal under this section, surplus means the required surplus whichcorresponds to the paid-up capital stock required of a stock insurer forauthority to transact a like class or classes of insurance.

(b)  The insurer shall be deemed insolvent andshall be proceeded against as authorized by this code if:

(1)  The attorney fails to make the assessment withinthirty days after the commissioner orders the attorney to do so; or

(2)  The deficiency is not fully made up within sixtydays after the date the assessment was made.

(c)  If liquidation of such an insurer is ordered,an assessment shall be levied upon the subscribers for such an amount, subjectto limits as provided by this code, as the commissioner determines to benecessary to discharge all liabilities of the insurer, exclusive of any fundscontributed by the attorney, but including the reasonable cost of theliquidation. [L 1987, c 347, pt of §2]