KRS 304.24-350: Impairment of capital or assets.

(1) If the assets of an insurer at any time are less than its liabilities, including its capital

stock as a liability, if a stock insurer, or its minimum required surplus if a mutual

insurer, the commissioner shall forthwith determine the amount of such defici ency

and give notice to the insurer to make good the deficiency within ninety (90) days

after the giving of such notice.

(2) The insurer may cure the deficiency by a decrease of its capital stock or by other

lawful means. The deficiency shall be made good in cash or in assets eligible under

this code for investment of the insurer's funds or by decrease of the insurer's capital

stock to an amount not below the minimum required for the kinds of insurance to be

thereafter transacted.

(3) If the deficiency is n ot made good and proof thereof filed with the commissioner

within such ninety -day period, the commissioner shall revoke the insurer's

certificate of authority, the insurer shall be deemed insolvent, and shall be

proceeded against as authorized by this code.