US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 28
                    ORGANIZATION AND CORPORATE PROCEDURES
                         OF STOCK AND MUTUAL INSURERS
    41-2852.  IMPAIRMENT OF CAPITAL OR ASSETS. (1) If the assets of a domestic
insurer are less than its liabilities and the minimum amount of capital funds
required to be maintained by it under section 41-313, Idaho Code, for
authority to transact the kinds of insurance being transacted, the director
shall at once determine the amount of deficiency and serve notice upon the
insurer to cure the deficiency and file proof thereof with him within the
period specified in the notice, which period shall be not less than thirty
(30) nor more than ninety (90) days from the date of the notice. Such notice
may be so served by delivery to the insurer, or by mailing to the insurer
addressed to its registered office in this state.
    (2)  The deficiency may be made good in cash or in assets eligible under
chapter 7 (investments) for the investment of the insurer's funds; or by
amendment of the insurer's certificate of authority to cover only such kind or
kinds of insurance thereafter for which the insurer has sufficient paid-in
capital stock (if a stock insurer) or surplus (if a mutual insurer) under this
code; or, if a stock insurer, by reduction of the number of shares of the
insurer's authorized capital stock or the par value thereof through amendment
of its articles of incorporation, to an amount of authorized and paid-in
capital stock not below the minimum required for the kinds of insurance
thereafter to be transacted.
    (3)  After any such reduction of authorized capital stock the insurer
shall require the surrender to it of outstanding stock certificates in
exchange for new certificates to be issued in lieu thereof for such number
and/or par value of shares as the respective stockholders are proportionately
entitled to receive.
    (4)  If the deficiency is not made good and proof thereof filed with the
director within the period required by the notice as specified in subsection
(1) above, the insurer shall be deemed insolvent and the director shall
institute delinquency proceedings against it under chapter 33 of this code.