§ 422. Dividends
(a) The directors of a domestic mutual insurer on the cash premium plan may from time to time apportion and pay to its members as entitled thereto, dividends only out of that part of its surplus funds which are in excess of its required minimum surplus and which represent net realized savings and net realized […]
§ 423. Nonparticipating policies
(a) If its articles of incorporation so provide, a domestic mutual insurer on the cash premium plan may, while it is authorized to issue policies without contingent liability to assessment, issue policies not entitled to participate in the insurer’s savings and earnings. (b) Such insurer shall not issue in this territory both participating and nonparticipating […]
§ 424. Borrowed capital
(a) A domestic mutual insurer on the cash premium plan may, with the Commissioner’s advance approval and without the pledge of any of its assets, borrow money to defray the expenses of its organization or for any purpose required by its business, upon an agreement that such money and such interest thereon as may be […]
§ 425. Repayment of borrowed capital
(a) The insurer may repay any loan received pursuant to section 424 of this title, or any part thereof as approved by the Commissioner, only out of its funds which represent such loan or realized net earned surplus. No repayment shall be made which reduces the insurer’s surplus below the minimum surplus required for the […]
§ 426. Impairment of surplus
(a) If the assets of a domestic mutual insurer on the cash premium plan fall below the amount of its liabilities, plus the amount of any surplus required by this title for the kinds of insurance authorized to be transacted, the Commissioner shall at once ascertain the amount of the deficiency and serve notice upon […]
§ 427. Mutual may not reorganize as stock insurer; reinsurance
(a) No domestic mutual insurer shall hereafter be converted, changed, or reorganized as a stock corporation. (b) Such an insurer may be wholly reinsured in and its assets transferred to and its liabilities assumed by another mutual or stock insurer under such terms and conditions as are approved by the Commissioner in advance of such […]
§ 428. Distribution of assets upon liquidation
(a) Upon the liquidation of a domestic mutual insurer, its assets remaining after discharge of its indebtedness and policy obligations shall be distributed to its members who were such within the 36 months prior to the last termination of its certificate of authority. (b) The distributive share of each such member shall be in the […]
§ 421. Revocation of right to issue nonassessable policies
(a) The Commissioner shall revoke the authority of a domestic mutual insurer so to extinguish the contingent liability of its members if— (1) at any time the insurer’s assets are less than the sum of its liabilities and the surplus required for such authority; or (2) the insurer, by resolution of its directors approved by […]
§ 416. Contingent liability of members of assessment insurer
The contingent liability of members of a domestic mutual insurer doing business on the assessment premium plan shall be called upon and enforced by its directors as provided in its bylaws.
§ 417. Contingent liability as asset
Any contingent liability of members of a domestic mutual insurer to assessment does not constitute an asset of the insurer in any determination of its financial condition.