17:17-14. Assessments required when liabilities of mutual company, other than fire or life, exceed assets
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/nj/title-17/chapter-17/17-17-14·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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.