- (a) Each year following the annual report required by 23 CAR § 331-110, any association having “surplus funds” from its old business, as that term is defined in 23 CAR § 331-139(b), may apply to the board for authorization to transfer all or part of those surplus funds to its new business account if that new business account, according to the association’s annual report, has funds insufficient to meet the reserve requirements for its membership calculated according to the reserve table contained in 23 CAR § 331-143.
- (b) Upon receipt of such request, the board shall approve or disapprove it within sixty (60) days, taking into consideration other remedial measures, if any that have been invoked by the board.
- (c) “Surplus funds”, as that term is used in this part, means those old business funds held by an association, as reflected by its annual report, in excess of the total face value of outstanding policies.