17:17-14 - Assessments required when liabilities of mutual company, other than fire or life, exceed assets - New Jersey Statutes

17:17-14.  Assessments required when liabilities of mutual company, other than fire or life, exceed assets
    When the liabilities of any mutual insurance company, other than fire or life, organized under the laws of this State and now doing business, shall exceed its assets, or hereafter organized shall exceed the net assets as provided in section 17:17-7 of this Title for the commencement of business, its  board of directors shall raise money by assessment to restore such excess, and  on neglect or refusal so to do after sixty days' notice from the treasurer or  the Commissioner of Banking and Insurance of such excess of liabilities over  assets, the directors so neglecting or failing shall be personally liable to  pay the liabilities to the persons to whom the same are due and the  Commissioner of Banking and Insurance shall take possession of the property and  business of the company, as provided in section 17:30-1 of this Title.

    This section shall not apply to stockholders of mutual companies having a capital stock.

     L.1951, c. 206, p. 746, s. 1.