Definitions for "impaired capital"
Situation in which the par value of a companys stock exceeds the companys total capital.
A condition that exists if the difference between an insurer's assets and liabilities is less than the minimum capital required by regulators. An insurer may be impaired without necessarily being insolvent. If an insurer's capital is impaired, its authority to transact business may be suspended by regulators.
When a company's total capital is less than the par value of all its capital stock. Source