Florida Statutes
Part I - Stock and Mutual Insurers: Organization and Corporate Procedures (Ss. 628.011-628.535)
628.411 - Impairment of capital or assets.


(1) If a domestic stock insurer’s capital, as represented by the aggregate par value of its outstanding capital stock, becomes impaired, or if the assets of a mutual insurer are less than the sum of its liabilities and the minimum amount of surplus required to be maintained by it, the office shall at once determine the amount of deficiency and serve notice upon the insurer to make good the deficiency within 90 days after service of such notice.
(2) The deficiency may be made good in cash or in assets eligible 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, if a stock insurer, or surplus, if a mutual insurer, under this code; or, if a stock insurer, by reduction of the insurer’s authorized capital stock through amendment of its certificate of incorporation, to an amount of paid-in capital stock not below the minimum required for the kinds of insurance thereafter to be transacted.
(3) After any such reduction of authorized capital stock the insurer shall have the right to require the return of the original certificate of stock held by each stockholder in exchange for new certificates to be issued in lieu thereof for such number of shares as the stockholder is entitled to in the proportion that the reduced capital bears to the original capital.
(4) If the deficiency is not made good and proof thereof filed with the office within such 90-day period, the insurer shall be deemed insolvent and the office shall institute delinquency proceedings against it under chapter 631; except that if such deficiency exists because of increased loss reserves required by the office, or because of disallowance by the office of certain assets or reduction of the value at which carried in the insurer’s accounts, the office may, in its discretion and upon application and good cause shown, and if it finds that the establishment or maintenance of such inadequate reserves or overvalued assets was not willful on the part of the insurer, extend for not more than an additional 60 days the period within which such deficiency may be so made good and such proof thereof so filed.
History.—s. 661, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 660, 665, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 1278, ch. 2003-261.

Structure Florida Statutes

Florida Statutes

Title XXXVII - Insurance

Chapter 628 - Stock and Mutual Insurers; Holding Companies

Part I - Stock and Mutual Insurers: Organization and Corporate Procedures (Ss. 628.011-628.535)

628.011 - Scope of part.

628.021 - “Stock insurer” defined.

628.031 - “Mutual insurer” defined.

628.041 - Applicability of general corporation statutes.

628.051 - Application for permit to form insurer; contents; fee.

628.061 - Investigation of proposed organization.

628.071 - Granting, denial of permit.

628.081 - Incorporation of domestic insurer.

628.091 - Filing, approval of articles of incorporation.

628.101 - Amendment of certificate of incorporation; stock insurer.

628.111 - Amendment of articles of incorporation; mutual insurer.

628.121 - Capital stock; amount; payment.

628.131 - Limitation on organization and stock sales expenses.

628.151 - Insurance business exclusive.

628.152 - Domestic stock insurers; proxies, consents, and authorizations with respect to any voting security.

628.161 - Initial qualifications; mutuals.

628.171 - Formation of mutual insurer; bond.

628.221 - Bylaws of mutual insurer.

628.231 - Directors.

628.251 - Management and exclusive agency contracts.

628.255 - Person with effective control cannot receive commission unless contract approved; penalties.

628.261 - Notice of change of director or officer.

628.271 - Office and records; penalty for unlawful removal of records.

628.281 - Exceptions to requirement that office, records, and assets be maintained in this state.

628.291 - Unauthorized transactions in other states.

628.301 - Membership in mutual insurer.

628.341 - Nonassessable policies; mutual insurers.

628.351 - Nonassessable policies; revocation of authority of mutual insurer.

628.361 - Participating policies.

628.371 - Dividends to stockholders.

628.381 - Dividends to mutual policyholders.

628.391 - Illegal dividends; penalty.

628.401 - Borrowed surplus.

628.411 - Impairment of capital or assets.

628.421 - Assessment of stockholders or members.

628.431 - Mutualization of stock insurers.

628.441 - Converting mutual insurer.

628.451 - Merger or share exchange of stock insurers and other entities.

628.461 - Acquisition of controlling stock.

628.4615 - Specialty insurers; acquisition of controlling stock, ownership interest, assets, or control; merger or consolidation.

628.471 - Mergers; mutual insurers.

628.481 - Bulk reinsurance; stock insurers.

628.491 - Mergers and consolidations; mutual insurers; agreement of bulk reinsurance.

628.501 - Mutual member’s share of assets on liquidation.

628.511 - Ownership or transfer of securities without physical delivery of certificates.

628.520 - Change of domicile of a foreign insurer.

628.525 - Change of domicile of a domestic insurer.

628.530 - Effects of redomestication.

628.535 - Authority to adopt rules.