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304.33-340 Assessments.
(1)
(2)
(3)
(4)
(5)
Report to court. As soon as practicable but not more than two (2) years from
the date of an order of liquidation under KRS 304.33-200 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; and
(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.
Levy of assessment.
(a) Upon the basis of the report provided in subsection (1) of this section,
including any supplements and amendments thereto, the court may levy
ex parte one (1) 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 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.
Order to show cause. After levy of assessment under subsection (2) of this
section, the court shall issue an order directing each member who has not paid
the assessment pursuant to the order to show cause why the liquidator shall
not have a judgment therefor. If a member of the insurer also appears to be
indebted to the insurer apart from the assessment, the court, upon application
of the liquidator, may also direct the member to show cause why he should not
pay the other indebtedness. Liability for such indebtedness shall be determined
in the same manner and at the same time as the liability to pay the
assessment.
Notice. The liquidator shall give notice of the order to show cause, by
publication if so directed by the court and by first-class mail to each member
liable thereunder, mailed at least twenty (20) days before the return day of the
order to show cause, to his last known address as it appears on the records of
the insurer.
Orders and hearings.
(a) If a member does not appear and serve objections upon the liquidator
upon the return day of the order to show cause under subsection (3) of
this section, the court shall make an order adjudging the member liable
for the amount of the assessment against him and other indebtedness,
pursuant to subsection (3) of this section, together with costs, and the
liquidator shall have a judgment against the member therefor.
(b) If on such return day, the member appears and serves objections upon
the liquidator, the court may hear and determine the matter or may
appoint a referee to hear it and make such order as the facts warrant. Any
order made by a referee under this paragraph shall have the same force
and effect as if it were a judgment of the court, subject to review by the
(6)
court upon application within thirty (30) days.
Collection. The liquidator may enforce any order or collect any judgment under
subsection (5) of this section by any lawful means.
Effective:June 18, 1970
History: Created 1970 Ky. Acts ch. 301, subtit. 33, sec. 34, effective June 18,
1970.
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