17:17-14 - Assessments required when liabilities of mutual company, other than fire or life, exceed assets
17:17-14.Ā Assessments required when liabilities of mutual company, other than fire or life, exceed assets
When the liabilities of any mutual insurance company, other than fire or life, organized under the laws of this State and now doing business, shall exceed its assets, or hereafter organized shall exceed the net assets as provided in section 17:17-7 of this Title for the commencement of business, itsĀ board of directors shall raise money by assessment to restore such excess, andĀ on neglect or refusal so to do after sixty days' notice from the treasurer orĀ the Commissioner of Banking and Insurance of such excess of liabilities overĀ assets, the directors so neglecting or failing shall be personally liable toĀ pay the liabilities to the persons to whom the same are due and theĀ Commissioner of Banking and Insurance shall take possession of the property andĀ business of the company, as provided in section 17:30-1 of this Title.
This section shall not apply to stockholders of mutual companies having a capital stock.
L.1951, c. 206, p. 746, s. 1.
Ā
When the liabilities of any mutual insurance company, other than fire or life, organized under the laws of this State and now doing business, shall exceed its assets, or hereafter organized shall exceed the net assets as provided in section 17:17-7 of this Title for the commencement of business, itsĀ board of directors shall raise money by assessment to restore such excess, andĀ on neglect or refusal so to do after sixty days' notice from the treasurer orĀ the Commissioner of Banking and Insurance of such excess of liabilities overĀ assets, the directors so neglecting or failing shall be personally liable toĀ pay the liabilities to the persons to whom the same are due and theĀ Commissioner of Banking and Insurance shall take possession of the property andĀ business of the company, as provided in section 17:30-1 of this Title.
This section shall not apply to stockholders of mutual companies having a capital stock.
L.1951, c. 206, p. 746, s. 1.
Ā