Section 4519. Impairment of reserves and surplus; order to make good deficiency

(a) Whenever the superintendent determines that the admitted  assets of an authorized society  will  be  less  than  the  sum  of  its
  required  reserves,  accrued  liabilities,  and minimum surplus within a
  period of five years or less, the superintendent  may,  in  his  or  her
  discretion,  require  submission  of  reports,  business  plans or other
  information demonstrating the steps the society is taking to address the
  deficiency and require that  such  society  take  such  actions  as  the
  superintendent  deems  necessary and appropriate to maintain the minimum
  surplus amount, including, but not limited to, prohibiting such  society
  from  issuing  any  new contracts of insurance in this state, and in the
  case of a domestic society, from issuing any new contracts in this state
  or elsewhere.
    (b)(1) Whenever the superintendent determines that the admitted assets
  of an authorized society are less than the sum of its required reserves,
  accrued liabilities, and minimum surplus, he or she shall determine  the
  amount  of  such  deficiency  and  issue  a  written requisition to such
  society to remove, repair or  make  good  such  deficiency  within  such
  period  as he or she shall designate, not less than thirty days nor more
  than six months from the service of such requisition, except that if  he
  or she believes the interests of the certificate holders of such society
  will  best  be served by extending such period of time, he or she may do
  so for such period or periods of time as  he  or  she,  in  his  or  her
  discretion  deems  best. He or she may also prohibit such society, while
  such deficiency exists, from issuing any new contracts of  insurance  in
  this  state, and in the case of a domestic society, from issuing any new
  contracts in this state or elsewhere. If such society shall fail  or  be
  unable  to  make good such deficiency within such period as so extended,
  the  superintendent  shall  proceed  against  such  society  under   the
  provisions  of  article  seventy-four of this chapter on the ground that
  its  further  transaction  of  business  will  be   hazardous   to   its
  policyholders, its creditors or the public.
    (2)  In the event that the superintendent determines that the admitted
  assets of a domestic society are less  than  the  sum  of  its  required
  reserves,  accrued  liabilities, and minimum surplus, the superintendent
  shall have the power and authority to require that the society merge  or
  otherwise  consolidate  with  another willing authorized society or that
  the society cede any individual risk or risks, in whole or in part, to a
  willing society or life insurer.
    (c)  An  authorized  society  may  assess  members  as  described   in
  subsection  (g)  of  section  four  thousand  five  hundred four of this
  article only after such assessment is filed with the superintendent  and
  approved  by  him or her, or, in the case of a foreign or alien society,
  after approval of the insurance department of the state of domicile  and
  upon  notice  to  the  superintendent. The superintendent shall have the
  authority to prohibit any foreign or alien society that has assessed its
  members from issuing any new contracts of insurance in this state.