56-21-105 - Impairment of guaranty capital Effect.
56-21-105. Impairment of guaranty capital Effect.
(a) Should the guaranty capital of any mutual fire insurance company at any time become impaired and remain so for sixty (60) days, the company shall cease issuing policies until the impairment is made good by either replacing the funds due the guaranty capital or by reducing the authorized amount of same by written notice to the commissioner by an amount equal to the impairment, but in no event to less than nine hundred fifty thousand dollars ($950,000). The company may continue to collect premiums that are due or become due on policies already in force while the impairment exists and until it is made good.
(b) The increase in the minimum amount of guaranty capital provided by the 1969 amendment does not apply to companies qualified and authorized prior to May 7, 1969.
[Acts 1907, ch. 461, § 4; Shan., § 3369a9; Acts 1921, ch. 160, § 4; Code 1932, § 6260; Acts 1969, ch. 218, §§ 3, 6; T.C.A. (orig. ed.), § 56-2007.]