§432:1-502  Summary orders andsupervision.  (a)  Whenever the commissioner determines that the financialcondition of any mutual benefit society is such that its continued operationmight be hazardous to its members, creditors, or the general public, or that ithas violated any provision of this chapter, the commissioner, after notice andhearing, may order the society to take such action as may be reasonablynecessary to rectify such condition or violation, including but not limited toone or more of the following:

(1)  Reducing the total amount of present andpotential liability for benefits by reinsurance or other method acceptable tothe commissioner;

(2)  Reducing the volume of new business beingaccepted;

(3)  Reducing expenses by specified methods;

(4)  Suspending or limiting the writing of newbusiness for a period of time;

(5)  Increasing the society's capital and surplus bycontribution; or

(6)  Taking such other steps as the commissioner maydeem appropriate under the circumstances.

(b)  For purposes of this section, theviolation by a society of any law of this State to which such society issubject shall be deemed a violation of this chapter.

(c)  The commissioner, by rule, may set uniformstandards and criteria for early warning that the continued operation of anysociety might be hazardous to its members, creditors, or the general public andto set standards for evaluating the financial condition of any society, whichstandards shall be consistent with the purposes expressed in subsection (a).

(d)  The remedies and measures available to thecommissioner under this section shall be in addition to, and not in lieu of,the remedies and measures available to the commissioner under article 15 ofchapter 431. [L 1987, c 347, pt of §2; am L 1993, c 350, §20; am L 1997, c 367,§2]

 

Note

 

  L 1997, c 367, §3 provides:

  "SECTION 3.  This Act [enacting §§432:1-406 to 409 andamending §432:1-502] shall not apply to:

(1) Societies thatdo not operate as a hospital, medical or indemnity society, or corporation; and

(2) Labor unionmutual benefit societies under section 432:1-103(b)."