2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 40 - Rehabilitation and Liquidation (§§ 4001 — 4054) › § 4028 - Liquidation—Assessments

(1) As soon as possible, but no later than two years after the date of an order of liquidation under § 4015 of this title of an insurer who issues assessable policies, the liquidator shall present a report to the court setting forth:
(a) The reasonable value of the assets of the insurer;
(b) the probable total liabilities of the insurer;
(c) the probable aggregate amount of the assessments required to pay all the claims of creditors in full, including expenses of administration and costs involved in collecting the assessment, and
(d) a recommendation as to whether or not an assessment should be levied and the amount thereof.
(2)
(a) Based on the report provided in subsection (1) of this section, including any supplements or amendments to the report, the Receivership Court may impose one or more assessments on the members of the insurer who are subject to assessment.
(b) Subject to any applicable legal limitation on assessability, the total assessment shall be for the amount by which the sum of the probable liabilities, the expenses of administration and the estimated cost of collection of the assessment pursuant to the order, exceeds the value of the existing assets, taking in due account the assessments that cannot be collected economically.
(3) After levy of assessment pursuant to subsection (2) of this section, the liquidator shall issue an order directing each member who has not paid the assessment to show cause why the liquidator should not pursue a judgment ordering the payment of the assessment.
(4) The liquidator shall give notice of the order to show cause by publication and by first-class mail to each affected member to his/hmyer last known address as it appears on the insurer’s records at least twenty (20) days before the date of return of the order to show cause, or by such other method of notification as the Receivership Court may authorize. Failure to receive the notice or the order within the time specified therein shall not be used as [a] defense in any proceeding to collect the assessment.
(5)
(a) If a member does not appear and serve duly verified objections to the liquidator on or before the day for responding to the order to show cause as provided in subsection (3) of this section, the court shall issue an order adjudging the member liable for the payment of the amount of the assessment against him/her according to subsection (3) of this section, including all costs, and the liquidator shall thus have a judgment against the member therefor.
(b) If, on or prior to the day for responding, the member appears and serves duly verified objections, the Commissioner may hear the case and issue a decision or appoint a referee to intervene and issue an order such as the facts warrant. If the Commissioner determines that the objections do not warrant that a member be relieved from assessment, the member may request the court to review the matter and annul the order to show cause.
(6) The liquidator may enforce any order or collect any judgment according to the provisions of subsection (5) of this section, by any lawful means.
History —Ins. Code, added as § 40.280 on Aug. 17, 1991, No. 72, § 1; Dec. 14, 2007, No. 206, § 27.