§ 1310. Impairment of a stock insurer. (a) Whenever the superintendent
finds from a financial statement, or a report on examination, of any
domestic stock insurer that (i) the admitted assets are less than the
aggregate amount of its liabilities and outstanding capital stock or
(ii) the admitted assets of any such insurer which is required to
maintain a minimum surplus to policyholders are less than the aggregate
amount of its liabilities and the amount of its minimum surplus to
policyholders, he shall determine the amount of the impairment and order
the insurer to eliminate the impairment within such period as he
designates, not more than ninety days from the service of the order. He
may also order the insurer not to issue any new policies while the
impairment exists. If the impairment as determined by the provisions of
item (i) hereof equals or exceeds twenty-five percent of the insurer's
outstanding capital stock, or as determined by the provisions of item
(i) or (ii) hereof is such that the insurer does not have the minimum
capital or minimum surplus to policyholders required by this chapter,
and if at the expiration of such designated period, such insurer has not
satisfied the superintendent that such impairment has been eliminated,
the superintendent may proceed against the insurer pursuant to the
provisions of article seventy-four of this chapter on the ground that
its condition is such that its further transaction of business will be
hazardous to its policyholders or its creditors or the public.

(b) If any foreign stock insurer authorized to do business in this
state is found to be impaired, the superintendent may, after notice and
hearing, order such insurer not to issue during such time as he
prescribes any new policies in this state, and may, after notice and
hearing, revoke its license to transact business in this state.