NY Ins L § 4519 (2021)
2021 New York Laws ISC - Insurance Article 45 - Fraternal Benefit Societies 4519 - Impairment of Reserves and Surplus; Order to Make Good Deficiency.

§  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.