40 Pa. Stat. § 727
Any stock casualty insurance company receiving notice from the Insurance Commissioner that its capital is impaired shall immediately call upon its stockholders for such amounts as will restore its capital to the amount fixed by its charter. In case any stockholder neglects or refuses to pay the amount called for, after notice personally given or by advertisement, at such time and in such manner as the commissioner shall approve, the company shall require the return of the original certificate of stock held by such stockholder, and, in lieu thereof, issue new certificates in the proportion that the ascertained value of the assets of the company may, as determined by the commissioner, bear to the original capital; the company paying for any fractional parts of shares. The directors may create new stock, and issue certificates therefor, and dispose of the same, at not less than par, for an amount sufficient to make up the original capital, or the commissioner may, in his discretion, permit the company to reduce its capital and the par value of its shares in proportion to the extent of the impairment, but the capital shall at no time be reduced to an amount less than that required by law for the organization of any such company. In fixing such reduced capital, not more than fifty per centum (50%) of the original capital shall be deducted from the assets on hand, to be retained as surplus funds; nor shall any part of the assets be distributed to stockholders.
40 P.S. § 727