2006 Utah Code - 31A-27-325 — Assessments.

     31A-27-325.   Assessments.
     (1) As soon as practicable, but not more than two years from the date of an order of liquidation under Section 31A-27-310 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.
     (2) (a) Upon the basis of the report provided in Subsection (1), including any supplements and amendments to the report, the court may, ex parte, levy one or more assessments against all the 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 realizable value of existing assets, with due regard being given to assessments that cannot be collected economically.
     (3) After a levy of assessment under Subsection (2), 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 may not have a judgment for the assessment. 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 this other indebtedness is determined in the same manner and at the same time as the liability to pay the assessment.
     (4) The liquidator shall give notice of the order to show cause to each member liable under the order by publication and by first class mail, at least 20 days before the return day of the order to show cause. Publication shall be made at least twice in at least two newspapers with sufficient circulation and appropriate location to best provide actual notice. The mailing shall be to the member's last known address as it appears on the records of the insurer.
     (5) (a) If a member does not appear and serve verified objections upon the liquidator by the return day of the order to show cause under Subsection (3), the court shall adjudge the member liable for the amount of the assessment against the member and other indebtedness, under Subsection (3), together with costs. The liquidator shall have judgment upon the order.
     (b) If, on or before the return day, the member appears and serves verified objections upon the liquidator, the liquidator may hear and determine the matter or may appoint a referee to hear it and make the order warranted by the facts. Any order made by a referee under this subsection has the same force and effect as if it were a judgment of the court. This order is subject to review by the court upon application made within 30 days from the date of the order.
     (6) The liquidator may enforce any order or collect any judgment under Subsection (5) by any lawful means.

Amended by Chapter 204, 1986 General Session