§ 4519. Impairment of reserves and surplus; order to make good
deficiency. (a) Whenever the superintendent determines that the admitted
assets of an authorized society will be less than the sum of its
required reserves, accrued liabilities, and minimum surplus within a
period of five years or less, the superintendent may, in his or her
discretion, require submission of reports, business plans or other
information demonstrating the steps the society is taking to address the
deficiency and require that such society take such actions as the
superintendent deems necessary and appropriate to maintain the minimum
surplus amount, including, but not limited to, prohibiting such society
from issuing any new contracts of insurance in this state, and in the
case of a domestic society, from issuing any new contracts in this state
or elsewhere.

(b)(1) Whenever the superintendent determines that the admitted assets
of an authorized society are less than the sum of its required reserves,
accrued liabilities, and minimum surplus, he or she shall determine the
amount of such deficiency and issue a written requisition to such
society to remove, repair or make good such deficiency within such
period as he or she shall designate, not less than thirty days nor more
than six months from the service of such requisition, except that if he
or she believes the interests of the certificate holders of such society
will best be served by extending such period of time, he or she may do
so for such period or periods of time as he or she, in his or her
discretion deems best. He or she may also prohibit such society, while
such deficiency exists, from issuing any new contracts of insurance in
this state, and in the case of a domestic society, from issuing any new
contracts in this state or elsewhere. If such society shall fail or be
unable to make good such deficiency within such period as so extended,
the superintendent shall proceed against such society under the
provisions of article seventy-four of this chapter on the ground that
its further transaction of business will be hazardous to its
policyholders, its creditors or the public.

(2) In the event that the superintendent determines that the admitted
assets of a domestic society are less than the sum of its required
reserves, accrued liabilities, and minimum surplus, the superintendent
shall have the power and authority to require that the society merge or
otherwise consolidate with another willing authorized society or that
the society cede any individual risk or risks, in whole or in part, to a
willing society or life insurer.

(c) An authorized society may assess members as described in
subsection (g) of section four thousand five hundred four of this
article only after such assessment is filed with the superintendent and
approved by him or her, or, in the case of a foreign or alien society,
after approval of the insurance department of the state of domicile and
upon notice to the superintendent. The superintendent shall have the
authority to prohibit any foreign or alien society that has assessed its
members from issuing any new contracts of insurance in this state.