2013 New York Consolidated Laws
ISC - Insurance
Article 13 - (1301 - 1325) ASSETS AND DEPOSITS
1310 - Impairment of a stock insurer.

 
    § 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.