(a) If a domestic stock insurer's paid-in capital stock (as represented by the aggregate par value of its outstanding capital stock) or capital account (of an insurance department or division of a corporation established under Chapter 7 of Title 5) becomes impaired, or the assets of a domestic mutual insurer are less than its liabilities and the minimum amount of surplus required to be maintained by it under this title for authority to transact the kinds of insurance being transacted, the Commissioner shall at once determine the amount of deficiency and serve notice upon the insurer to cure the deficiency and file proof thereof with the Commissioner within the period specified in the notice, which period shall be not less than 30 nor more than 90 days from the date of the notice. Such notice may be so served by delivery to the insurer or by mailing to the insurer addressed to its registered office in this State.
(b) The deficiency may be made good in cash or in assets eligible under Chapter 13 (Investments) of this title for the investment of the insurer's funds or by amendment of the insurer's certificate of authority to cover only such kind or kinds of insurance thereafter for which the insurer has sufficient paid-in capital stock (if a stock insurer) or surplus (if a mutual insurer) under this title, or, if a stock insurer, by reduction of the number of shares of the insurer's authorized capital stock or the par value thereof through amendment of its articles of incorporation, to an amount of authorized and unimpaired paid-in capital stock not below the minimum required for the kinds of insurance thereafter to be transacted.
(c) If the deficiency is not made good and proof thereof filed with the Commissioner within the period required by the notice, as specified in subsection (a) of this section above, the insurer shall be deemed insolvent and the Commissioner shall institute delinquency proceedings against it under Chapter 59 of this title.
Structure Delaware Code
Chapter 49. ORGANIZATION AND CORPORATE POWERS; PROCEDURES OF DOMESTIC STOCK AND MUTUAL INSURERS
§ 4902. “Stock,” “mutual” insurer, definitions.
§ 4903. General corporation statutes; applicability.
§ 4904. Insurance business exclusive.
§ 4905. Mutual insurers — Initial qualifications.
§ 4906. Mutual insurers — Permit; deposit.
§ 4907. Mutual insurers — Qualifying applications for insurance.
§ 4908. Mutual insurers — Trust deposit of qualifying premiums; issuance of policies.
§ 4909. Mutual insurers — Failure to qualify.
§ 4910. Mutual insurers — Additional kinds of insurance.
§ 4912. Bylaws of mutual insurer.
§ 4913. Minutes of corporate meetings of mutual insurers.
§ 4914. Contingent liability of mutual members.
§ 4915. Levy of contingent liability.
§ 4916. Enforcement of contingent liability.
§ 4917. Nonassessable policies, mutual insurers; revocation of authority.
§ 4918. Information to stockholders and proxy regulations.
§ 4919. Change of directors, officers; notice.
§ 4920. Prohibited pecuniary interest of officials.
§ 4921. Management and exclusive agency contracts.
§ 4922. Dividends to stockholders.
§ 4923. Participating policies.
§ 4924. Dividends to policyholders.
§ 4925. Solicitation of business; issuance of policies in other jurisdictions.
§ 4926. Payment of taxes; exoneration.
§ 4927. Impairment of capital or assets.
§ 4928. Mutualization of stock insurer.
§ 4929. Conversion to ordinary business corporation.
§ 4930. Merger, consolidation of stock insurers.
§ 4931. Affiliation of stock insurers.
§ 4932. Acquisition of controlling stock.
§ 4933. Converting mutual insurer.
§ 4934. Merger, consolidation — Allowable circumstances; “surviving insurer” defined.
§ 4936. Merger, consolidation of mutual insurers — Effectuation; disapproval by Commissioner.
§ 4937. Merger, consolidation of mutual insurers — Approval by members.
§ 4938. Merger, consolidation of mutual insurers — Impaired mutuals.
§ 4942. Merger, consolidation of mutual insurers — Effect of merger or consolidation.
§ 4943. Preservation of old charter in merger or consolidation.