§432:1-502  Summary orders and
supervision.  (a)  Whenever the commissioner determines that the financial
condition of any mutual benefit society is such that its continued operation
might be hazardous to its members, creditors, or the general public, or that it
has violated any provision of this chapter, the commissioner, after notice and
hearing, may order the society to take such action as may be reasonably
necessary to rectify such condition or violation, including but not limited to
one or more of the following:



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



(2)  Reducing the volume of new business being
accepted;



(3)  Reducing expenses by specified methods;



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



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



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



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



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



(d)  The remedies and measures available to the
commissioner under this section shall be in addition to, and not in lieu of,
the remedies and measures available to the commissioner under article 15 of
chapter 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 and
amending §432:1-502] shall not apply to:



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



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