375.1200. Report to court by liquidator, when, contents--assessment against members, court to compute an order, when.
Report to court by liquidator, when, contents--assessment againstmembers, court to compute an order, when.
375.1200. 1. As soon as practicable, but not more than twoyears from the date of an order of liquidation under section375.1176 of an insurer issuing assessable policies, theliquidator 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 assessmentnecessary to pay all claims of creditors and expenses in full,including expenses of administration and costs of collecting theassessment; and
(4) A recommendation as to whether or not an assessmentshould be made and in what amount.
2. (1) Upon the basis of the report provided in subsection1, including any supplements and amendments thereto, the courtmay levy one or more assessments against all members of theinsurer who are subject to assessment.
(2) Subject to any applicable legal limits onassessability, the aggregate assessment shall be for the amountthat the sum of the probable liabilities, the expenses ofadministration, and the estimated cost of collection of theassessment, exceeds the value of existing assets, with due regardbeing given to assessments that cannot be collected economically.
3. After levy of assessment under subsection 2 of thissection, the liquidator shall issue an order directing eachmember who has not paid the assessment pursuant to the order, toshow cause why the liquidator should not pursue a judgmenttherefor.
4. The liquidator shall give notice by publication and byfirst class mail of the order to show cause to each member liablethereunder, mailed to his last known address as it appears on theinsurer's records, at least twenty days before the return day ofthe order to show cause.
5. (1) If a member does not appear and serve duly verifiedobjections upon the liquidator on or before the return day of theorder to show cause under subsection 3 of this section, the courtshall make an order adjudging the member liable for the amount ofthe assessment made against him pursuant to subsection 3 of thissection, together with costs, and the liquidator shall have ajudgment against the member therefor.
(2) If on or before such return day, the member appears andserves duly verified objections upon the liquidator, the directormay hear and determine the matter or may appoint a referee tohear it and make such order as the facts warrant. In the eventthat the director determines that such objections do not warrantrelief from assessment, the member may request the court toreview the director's determination and vacate the order to showcause within thirty days of the director's determination.
6. The liquidator may enforce any order or collect anyjudgment entered pursuant to subsection 5 of this section by anylawful means.
(L. 1991 H.B. 385, et al. § 80)