2023 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.