US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 28
                    ORGANIZATION AND CORPORATE PROCEDURES
                         OF STOCK AND MUTUAL INSURERS
    41-2853.  ASSESSMENT OF STOCKHOLDERS OR MEMBERS. (1) Any insurer receiving
the director's notice required in section 41-2852(1):
    (a)  If a stock insurer and to the extent that stockholders are subject to
assessment under the insurer's articles of incorporation, by resolution of its
board of directors the insurer may assess its stockholders for amounts
necessary to cure the deficiency and provide the insurer with a reasonable
amount of surplus in addition. If any stockholder fails to pay a lawful
assessment after notice given to him in person, or by mail addressed to him at
his address last of record with the insurer, or in such other manner as may be
approved by the director, the insurer may require the return of the
certificates of stock theretofore held by the stockholder, and in cancellation
and in lieu thereof issue new certificates for such number of shares as the
stockholder may then be entitled to, upon the basis of the stockholder's
proportionate interest in the amount of the insurer's capital stock as
determined by the director to be remaining unimpaired at the time of the
determination of the amount of impairment under section 41-2852, after
deducting from such proportionate interest the amount of such unpaid
assessment. The insurer may pay for or issue fractional shares under this
subsection.
    (b)  If a mutual insurer, may levy an assessment upon members as is
provided for under section 41-2847.
    (2)  Neither this section nor section 41-2852 shall be deemed to prohibit
the insurer from curing any such deficiency through any lawful means other
than those referred to in such sections.