41-2852. IMPAIRMENT OF CAPITAL OR ASSETS. (1) If the assets of a domestic insurer are less than its liabilities and the minimum amount of capital funds required to be maintained by it under section 41-313, Idaho Code, for authority to transact the kinds of insurance being transacted, the director shall at once determine the amount of deficiency and serve notice upon the insurer to cure the deficiency and file proof thereof with him within the period specified in the notice, which period shall be not less than thirty (30) nor more than ninety (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.
(2) The deficiency may be made good in cash or in assets eligible under chapter 7 (investments) 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 code; 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 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 require the surrender to it of outstanding stock certificates in exchange for new certificates to be issued in lieu thereof for such number and/or par value of shares as the respective stockholders are proportionately entitled to receive.
(4) If the deficiency is not made good and proof thereof filed with the director within the period required by the notice as specified in subsection (1) above, the insurer shall be deemed insolvent and the director shall institute delinquency proceedings against it under chapter 33 of this code.
History:
[41-2852, added 1961, ch. 330, sec. 620, p. 645; am. 1999, ch. 65, sec. 7, p. 172.]
Structure Idaho Code
Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS
Section 41-2801 - SCOPE OF CHAPTER.
Section 41-2802 - “STOCK” INSURER — “MUTUAL” INSURER — DEFINITIONS.
Section 41-2803 - APPLICABILITY OF GENERAL CORPORATION STATUTES.
Section 41-2804 - INCORPORATION.
Section 41-2805 - FILING OF ARTICLES.
Section 41-2809 - INVESTIGATION OF PROPOSED ORGANIZATION.
Section 41-2818 - QUALIFICATION FOR INITIAL CERTIFICATE OF AUTHORITY — STOCK INSURERS.
Section 41-2820 - INITIAL QUALIFICATIONS — DOMESTIC MUTUALS.
Section 41-2822 - APPLICATIONS FOR INSURANCE IN FORMATION OF MUTUAL INSURER.
Section 41-2823 - FORMATION OF MUTUALS — TRUST DEPOSIT OF PREMIUMS — ISSUANCE OF POLICIES.
Section 41-2824 - FORMATION OF MUTUALS — FAILURE TO QUALIFY.
Section 41-2825 - ADDITIONAL KINDS OF INSURANCE — MUTUALS.
Section 41-2826 - AMENDMENT OF ARTICLES OF INCORPORATION — STOCK INSURERS.
Section 41-2827 - AMENDMENT OF ARTICLES OF INCORPORATION — MUTUAL INSURER.
Section 41-2828 - INSURANCE BUSINESS EXCLUSIVE.
Section 41-2829 - MEMBERSHIP IN MUTUALS.
Section 41-2830 - BY-LAWS OF MUTUAL.
Section 41-2831 - RIGHTS OF MUTUAL MEMBERS IN GENERAL.
Section 41-2832 - MEETINGS OF MEMBERS OF MUTUAL INSURER.
Section 41-2833 - SPECIAL MEETINGS OF MEMBERS OF MUTUAL INSURER.
Section 41-2834 - VOTING RIGHTS OF MUTUAL MEMBERS.
Section 41-2836 - NOTICE OF CHANGE OF DIRECTORS OR OFFICERS.
Section 41-2837 - PROHIBITED PECUNIARY INTEREST OF OFFICIALS.
Section 41-2838 - MANAGEMENT AND EXCLUSIVE AGENCY CONTRACTS.
Section 41-2839 - HOME OFFICE — RECORDS — ASSETS — PENALTY FOR UNLAWFUL REMOVAL.
Section 41-2840 - VOUCHERS FOR EXPENDITURES.
Section 41-2841 - BORROWED SURPLUS.
Section 41-2842 - PARTICIPATING POLICIES.
Section 41-2843 - DIVIDENDS TO STOCKHOLDERS.
Section 41-2844 - DIVIDENDS TO POLICY HOLDERS.
Section 41-2845 - ILLEGAL DIVIDENDS — PENALTY.
Section 41-2846 - CONTINGENT LIABILITY OF MUTUAL MEMBERS.
Section 41-2847 - LEVY OF CONTINGENT LIABILITY.
Section 41-2848 - ENFORCEMENT OF CONTINGENT LIABILITY.
Section 41-2849 - NONASSESSABLE POLICIES — MUTUAL INSURERS.
Section 41-2850 - NONASSESSABLE POLICIES — REVOCATION OF AUTHORITY.
Section 41-2851 - SOLICITATIONS IN OTHER STATES.
Section 41-2852 - IMPAIRMENT OF CAPITAL OR ASSETS.
Section 41-2853 - ASSESSMENT OF STOCKHOLDERS OR MEMBERS.
Section 41-2854 - MUTUALIZATION OF STOCK INSURERS.
Section 41-2854A - MUTUALIZATION OF SERVICE CORPORATIONS.
Section 41-2855 - CONVERSION OF MUTUAL INSURER TO STOCK INSURER.
Section 41-2856 - MERGERS AND CONSOLIDATIONS OF STOCK INSURERS.
Section 41-2857 - MERGERS AND CONSOLIDATIONS OF MUTUAL INSURERS.
Section 41-2858 - BULK REINSURANCE — MUTUAL INSURERS.
Section 41-2859 - MUTUAL MEMBER’S SHARE OF ASSETS ON LIQUIDATION.
Section 41-2860 - EQUITY SECURITIES OF DOMESTIC STOCK INSURANCE COMPANIES — STATEMENTS OF OWNERSHIP.
Section 41-2861 - RECOVERY OF PROFITS RESULTING FROM UNFAIR USE OF INFORMATION.
Section 41-2862 - RESTRICTIONS ON SALE OF EQUITY SECURITIES.
Section 41-2863 - PURCHASES AND SALES WHICH ARE EXEMPT.
Section 41-2864 - FOREIGN OR DOMESTIC ARBITRAGE TRANSACTIONS EXEMPT.
Section 41-2865 - “EQUITY SECURITY” DEFINED.
Section 41-2866 - CONDITIONS EXEMPTING EQUITY SECURITIES.
Section 41-2867 - RULES AND REGULATIONS.
Section 41-2868 - PROXY REGULATIONS.
Section 41-2870 - DEFINITIONS.
Section 41-2871 - USE OF BOOK-ENTRY SYSTEMS.
Section 41-2872 - HEALTH CARE PROVIDER CONTRACTS — GRIEVANCE PROCEDURE.
Section 41-2873 - BEST PRICE — MOST FAVORED NATIONS CLAUSE PROHIBITED.