N.Y. ISC Law § 7430 — New York Code / Act ISC / Article 74 / Section 7430
Levy of assessments; determination of liability of members
Status: in_force

§ 7430. Levy of assessments; determination of liability of members.\n(a) Within three years from the date of an order of rehabilitation or\nliquidation of a domestic mutual insurer filed in the office of the\nclerk of the county in which the insurer had its principal office, the\nsuperintendent may make a report to the court setting forth:\n  (1) the reasonable value of the insurer's assets;\n  (2) its probable liabilities; and\n  (3) the probable necessary assessment, if any, to pay all possible\nclaims and expenses in full, including expenses of administration.\n  (b) (1) Upon the basis of such report, including any amendments, the\ncourt, ex parte, may levy one or more assessments against all members of\nsuch insurer who, as shown by the records of the company, were members\nat any time within one year prior to the date of the issuance of the\norder to show cause under section seven thousand four hundred seventeen\nof this article.\n  (2) The assessments shall cover the excess of the insurer's probable\nliabilities over the reasonable value of its assets and the estimated\ncost of collection and percentage of uncollectibility thereof.\n  (3) The total assessments against any member with respect to any\npolicy, whether levied by the board of directors of such insurer, the\nsuperintendent in liquidation or rehabilitation of such insurer, or\notherwise, and whether levied to make good an impairment of required\nminimum surplus or for any other purpose under this chapter, shall be\nfor no greater amount than that specified in the by-laws and policies of\nthat member and may be limited as prescribed in subsection (a) of\nsection four thousand one hundred eleven of this chapter. However, if\nthe court finds that such policy was issued at a rate of premium below\nthe minimum rate lawfully permitted for the risk insured, the court may\ndetermine the upper limit of such assessment upon the basis of an\nadequate rate for such insurance.\n  (4) No such assessment shall be levied against any member with respect\nto any non-assessable policy issued in accordance with the laws of this\nstate.\n  (c) Thereafter, upon the filing of a further detailed report by the\nsuperintendent, the court shall issue an order directing each member of\nsuch insurer if he shall not pay the amount assessed against him to the\nsuperintendent on or before a day to be specified in said order, to show\ncause why he should not be held liable to pay such assessment together\nwith costs as set forth in subsection (e) hereof and why the\nsuperintendent should not have judgment therefor.\n  (d) The superintendent shall at least twenty days before the return\nday of the order cause a notice of such order setting forth a brief\nsummary of the contents of such order to be published in such manner as\nshall be directed by the court and mailed to each member at his last\nknown address appearing on the records of the insurer, or at his last\nknown address, if no address so appears.\n  (e) On the return day of such order to show cause, if such member\nshall not appear and serve verified objections upon the superintendent,\nthe court shall make an order adjudging that such member is liable for\nthe amount of such assessment together with ten dollars costs and\ndirecting that the superintendent may have judgment therefor. If the\nmember shall appear and serve verified objections upon the\nsuperintendent there shall be a full hearing before the court or a\nreferee to hear and determine, who, after such hearing, shall make an\norder either negativing the liability of such member to pay the\nassessment or directing that the superintendent may have judgment for\nthe whole or some part of the assessment and twenty-five dollars costs\nand necessary disbursements incurred at such hearing.\n  (f) A judgment upon any such order, whether granted by a court or\nreferee, shall have the same force and effect, and may be entered and\ndocketed, and may be appealed from as if it were a judgment in an\noriginal action brought in the court in which the proceeding is pending.\n