(a) Increase of the capital stock of a domestic stock insurer shall be by amendment of its articles of incorporation. The increase shall not be effective unless and until within six months after filing such amendment with the Lieutenant Governor, as required by section 307 of this title, nor until the increased capital has been fully paid in, in cash, and a certificate certifying such payments has been made in quadruplicate under oath by the insurer's president and secretary and the corporate seal and is filed in the public offices named in section 307 of this title.
(b) If the entire increase of the capital stock is purchased in good faith by employees, directors, and agents of the insurer or of its affiliated corporations under an installment purchase plan approved by the Commissioner in advance of the amendment, the Commissioner may extend a period not exceeding twelve months the time within which such increase of capital must be so fully paid in and such certificate so filed.
(c) If the increased capital stock is to be distributed as a stock dividend, such increased capital stock may be fully paid in out of any available surplus funds as is provided in section 353 of this title, and such payment shall be effected by a transfer on the insurer's books from its surplus account to its capital account.