§ 27-9-3-29 — Liquidator's report; assessment of members

Indiana § 27-9-3-29

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 9: SUPERVISION; REHABILITATION
• Ch. 3: Formal Proceedings

Text

(a) As soon as practicable but not more than
two (2) years from the date of an order of liquidation under section 7
of this chapter of an insurer issuing assessable policies, the liquidator
shall make a report to the Marion County circuit court stating:
(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.
(4) A recommendation as to whether or not an assessment should
be made and in what amount.
(b) Upon the basis of the report required by subsection (a),
including any supplements and amendments to that report, the Marion
County circuit court may levy one (1) or more assessments against all
members of the insurer who are subject to assessment.
(c) Subject to any applicable legal limits on assessability, the
aggregate assessment must be the amount that:
(1) the sum of the probable liabilities;
(2) the expenses of administration; and
(3) the estimated cost of collection of the assessment;
exceed the value of existing assets, with due regard being given to
assessments that cannot be collected economically.
(d) After the levy of assessment under subsections (b) and (c), the
liquidator shall issue an order directing each member who has not paid
the assessment under the order to show cause why the liquidator should
not pursue a judgment for that amount.
(e) The liquidator shall give notice of the order to show cause by
publication and by first-class mail to each member liable under the
order mailed to his last known address as it appears on the insurer's
records, at least twenty (20) days before the return day of the order to
show cause.
(f) 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 (d), the Marion County circuit court shall issue
an order adjudging the member liable for the amount of the assessment
against him, under subsection (d) together with costs. The liquidator
shall have a judgment against the member for that amount.
(g) If on or before the 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 an order as the facts warrant. In the event that the commissioner
determines that the objections do not warrant relief from assessment,
the member may request the Marion County circuit court to review the
matter and vacate the order to show cause.
(h) The liquidator may enforce any order or collect any judgment
under subsection (f) by any lawful means.
As added by Acts 1979, P.L.255, SEC.1.