N.Y. Insurance Law § 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.