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November 05, 2024 Clouds | 50°F
The 193rd General Court of the Commonwealth of Massachusetts

Section 23: Life company; impairment of funds; issuance of policies; penalty

Section 23. No life company whose actual funds, exclusive of its capital, are not of a net cash value equal to its liabilities, including the net value of its policies, computed by the rules of valuation established by sections nine and eleven, shall issue new policies of life or endowment insurance or annuity or pure endowment contracts until its funds have become equal to its liabilities, and it has obtained from the commissioner a certificate to that effect with authority to resume business. A company or any officer or agent thereof who issues any such policy or contract in violation of this section shall forfeit not more than one thousand dollars.