§ 27-14.3-35 - Assessments. - Rhode Island Statutes

SECTION 27-14.3-35

   § 27-14.3-35  Assessments. – (a) As soon as practicable but not more than two (2) years from the date of anorder of liquidation under § 27-14.3-22 of an insurer issuing assessablepolicies, 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 necessaryto pay all claims of creditors and expenses in full, including expenses ofadministration and costs of collecting the assessment; and

   (4) A recommendation as to whether or not an assessmentshould 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 to the report, thesuperior court for the county of Providence may levy one or more assessmentsagainst all members of the insurer who are subject to assessment;

   (2) Subject to any applicable legal limits on assessability,the aggregate assessment shall be for the amount that the sum of the probableliabilities, the expenses of administration, and the estimated cost ofcollection of the assessment exceeds the value of existing assets, with dueregard being given to assessments that cannot be collected economically.

   (c) After levy of assessment under subsection (b) of thissection, the liquidator shall issue an order directing each member who has notpaid the assessment pursuant to the order to show cause why the liquidatorshould not pursue a judgment for payment.

   (d) The liquidator shall give notice of the order to showcause by publication and by first class mail to each member liable pursuant tothe order mailed to his or her last known address as it appears on theinsurer's records, at least twenty (20) days before the return day of the orderto show cause.

   (e) If a member does not appear and serve duly verifiedobjections upon the liquidator on or before the return day of the order to showcause under subsection (c) of this section, the court shall make an orderadjudging the member liable for the amount of the assessment against him or herpursuant to subsection (c) of this section together with costs, and theliquidator shall have a judgment against the member for the amount;

   (2) If on or before the return day, the member appears andserves duly verified objection upon the liquidator, the commissioner may hearand determine the matter or may appoint a referee to hear it and make an orderas the facts warrant. In the event that the commissioner determines that theobjections do not warrant relief from assessment, the member may request thecourt to review the matter and vacate the order to show cause.

   (f) The liquidator may enforce any order or collect anyjudgment under subsection (e) of this section by any lawful means.