§ 26.1-06.1-30 — Assessments

North Dakota § 26.1-06.1-30

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-06.1: Insurance Company Rehabilitation and Liquidation

Text

1. As soon as practicable but not more than two years from the date of an order of
liquidation under section 26.1-06.1-17 of an insurer issuing assessable policies, the
liquidator shall make a report to the court setting forth:
a. The reasonable value of the assets of the insurer;
b. The insurer's probable total liabilities;
c. 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
d. A recommendation as to whether or not an assessment should be made and in
what amount.
2. a. Upon the basis of the report provided in subsection 1, including any supplements
and amendments thereto, the district court may levy one or more assessments
against all members of the insurer who are subject to assessment.
b. Subject to any applicable legal limits on assessability, the aggregate assessment
must 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.
3. After levy of assessment under subsection 2, 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.
4. 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 the member's 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.
5. a. 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 3, the court shall make an order adjudging the member liable for the
amount of the assessment against the member pursuant to subsection 3,
together with costs, and the liquidator shall have a judgment against the member
therefor.
b. 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 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.
6. The liquidator may enforce any order or collect any judgment under subsection 5 by
any lawful means.