Sec. 38a-933. (Formerly Sec. 38-451). Assessments.
Sec. 38a-933. (Formerly Sec. 38-451). Assessments. (a) As soon as practicable
but not more than two years from the date of an order of liquidation pursuant to section
38a-920 of an insurer issuing assessable policies, the liquidator shall make a report to
the court setting forth: (1) The reasonable value of the assets of the insurer; (2) the
insurer's probable total liabilities; (3) the probable aggregate amount of the assessment
necessary to pay all claims of creditors and expenses in full, including expenses of
administration and costs of collecting the assessment; and (4) a recommendation as to
whether or not an assessment should be made and in what amount.
(b) Upon the basis of the report provided in subsection (a) of this section, including
any supplements and amendments thereto, the Superior Court may levy one or more
assessments against all members of the insurer who are subject to assessment. Subject
to any applicable legal limits on assessability, the aggregate assessment shall be for the
amount that the sum of the probable liabilities, the expenses of administration, and the
estimated cost of collection of the assessment, exceeds the value of existing assets, with
due regard being given to assessments that cannot be collected economically.
(c) After levy of assessment under subsection (b) of this section the liquidator shall
issue an order directing each member who has not paid the assessment pursuant to the
order, to show cause why the liquidator should not pursue a judgment therefor.
(d) The liquidator shall give notice of the order to show cause by publication and
by first class mail to each member liable thereunder mailed to his last known address
as it appears on the insurer's records, at least twenty days before the return day of the
order to show cause.
(e) (1) If a member does not appear and serve duly verified objections upon the
liquidator on or before the return day of the order to show cause under subsection (c)
of this section, the court shall make an order adjudging the member liable for the amount
of the assessment against him, pursuant to subsection (c) of this section, together with
costs, and the liquidator shall have a judgment against the member therefor.
(2) If on or before such return day, the member appears and serves duly verified
objections upon the liquidator, the commissioner may hear and determine the matter or
may appoint a referee to hear it and make such order as the facts warrant. In the event
that the commissioner determines that such objections do not warrant relief from assessment, the member may request the court to review the matter and vacate the order to
show cause.
(f) The liquidator may enforce any order or collect any judgment under subsection
(e) of this section by any lawful means.
(P.A. 79-382, S. 31.)
History: Sec. 38-451 transferred to Sec. 38a-933 in 1991.