Montana Code Annotated
Part 4. Finance
33-3-432. Impairment of capital or assets

33-3-432. Impairment of capital or assets. (1) If a stock insurer's capital, as represented by the aggregate par value of its outstanding capital stock, becomes impaired or the assets of a mutual insurer are less than its liabilities and the minimum amount of surplus required to be maintained by it under 33-3-204 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 make good the deficiency within 60 days after service of such notice.
(2) The deficiency may be made good in cash or in assets eligible under chapter 12 for the investment of the insurer's funds as follows:
(a) if a stock insurer, by reduction of the insurer's capital to an amount not below the minimum required for the kinds of insurance to be transacted; or
(b) if a mutual insurer, by amendment of its certificate of authority to cover only the kind or kinds of insurance for which the insurer has sufficient surplus under this title.
(3) If the deficiency is not made good and proof is filed with the commissioner within the 60-day period, the insurer is insolvent and the commissioner shall institute delinquency proceedings against it under chapter 2, part 13; except that if the deficiency exists because of increased loss reserves required by the commissioner or because of disallowance by the commissioner of certain assets or reduction of the value at which carried in the insurer's accounts, the commissioner may, upon application and good cause shown, extend for not more than an additional 60 days the period within which the deficiency may be made good and proof of making good is filed.
History: En. Sec. 456, Ch. 286, L. 1959; R.C.M. 1947, 40-4739; amd. Sec. 12, Ch. 303, L. 1981; amd. Sec. 141, Ch. 575, L. 1981; amd. Sec. 44, Ch. 304, L. 1999.

Structure Montana Code Annotated

Montana Code Annotated

Title 33. Insurance and Insurance Companies

Chapter 3. Domestic Stock and Mutual Insurers

Part 4. Finance

33-3-401. Home office and records -- administrative or civil penalty for unlawful removal of records or assets

33-3-402. Vouchers for expenditures

33-3-403. through 33-3-410 reserved

33-3-411. Contingent liability of mutual members

33-3-412. Levy of contingent liability

33-3-413. Enforcement of contingent liability

33-3-414. Nonassessable policies of mutual insurers

33-3-415. Insufficient reserves -- nonassessable policies prohibited -- revocation of authority

33-3-416. through 33-3-420 reserved

33-3-421. Participating policies

33-3-422. Dividends to stockholders

33-3-423. Dividends to mutual policyholders

33-3-424. Illegal dividends -- administrative or civil penalty

33-3-425. through 33-3-430 reserved

33-3-431. Borrowed surplus

33-3-432. Impairment of capital or assets

33-3-433. Assessment of stockholders or members

33-3-434. Directors' liability for losses during deficiency

33-3-435. Stock transfer during impairment of capital

33-3-436. Mutual member's share of assets on liquidation

33-3-437. through 33-3-440 reserved

33-3-441. Equity securities of domestic stock insurance company -- statement of ownership

33-3-442. Inside trading of securities -- profit inures to company -- limitation of action to recover -- rules

33-3-443. Short sales of equity securities prohibited -- time for delivery after sale

33-3-444. Exemptions -- securities held in an investment account -- primary or secondary market -- rules

33-3-445. Exemptions -- arbitrage transactions

33-3-446. Exemptions -- registered securities -- holding by less than 100 persons

33-3-447. Rules of commissioner -- classifications -- effect

33-3-448. and 33-3-449 reserved

33-3-450. Purpose

33-3-451. Definitions

33-3-452. Use of book-entry systems -- rules

33-3-453. Deposit of securities by insurance companies