(1) As soon as practicable but not more than four years from the day on which an order of receivership of an insurer issuing assessable policies is entered, the receiver shall make a report to the receivership court setting forth:

lawyer at desk

Ask an insurance law question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Utah Code 31A-27a-511

  • Application: means a document:
         (10)(a)
              (10)(a)(i) completed by an applicant to provide information about the risk to be insured; and
              (10)(a)(ii) that contains information that is used by the insurer to evaluate risk and decide whether to:
                   (10)(a)(ii)(A) insure the risk under:
                        (10)(a)(ii)(A)(I) the coverage as originally offered; or
                        (10)(a)(ii)(A)(II) a modification of the coverage as originally offered; or
                   (10)(a)(ii)(B) decline to insure the risk; or
         (10)(b) used by the insurer to gather information from the applicant before issuance of an annuity contract. See Utah Code 31A-1-301
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Filed: means that a filing is:
              (69)(a)(i) submitted to the department as required by and in accordance with applicable statute, rule, or filing order;
              (69)(a)(ii) received by the department within the time period provided in applicable statute, rule, or filing order; and
              (69)(a)(iii) accompanied by the appropriate fee in accordance with:
                   (69)(a)(iii)(A) Section 31A-3-103; or
                   (69)(a)(iii)(B) rule. See Utah Code 31A-1-301
  • insurer: means a person who:
         (23)(a) is doing, has done, purports to do, or is licensed to do the business of insurance;
         (23)(b) is or has been subject to the authority of, or to rehabilitation, liquidation, reorganization, supervision, or conservation by an insurance commissioner; or
         (23)(c) is included under Section 31A-27a-104. See Utah Code 31A-27a-102
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Liabilities: is a s defined by and is measured in accordance with the National Association of Insurance Commissioner's Statements of Statutory Accounting Principles, as incorporated in this state by rules made by the department in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for the purposes of Subsection 31A-4-113(1)(b)(ii). See Utah Code 31A-27a-102
  • Member: means a person having membership rights in an insurance corporation. See Utah Code 31A-1-301
  • Order: means an order of the commissioner. See Utah Code 31A-1-301
  • Proceeding: includes an action or special statutory proceeding. See Utah Code 31A-1-301
  • receiver: means the commissioner or the commissioner's designee, including a rehabilitator, liquidator, or ancillary receiver. See Utah Code 31A-27a-102
  • receivership: means a rehabilitation, liquidation, or ancillary receivership. See Utah Code 31A-27a-102
  • receivership court: refers to the court in which a delinquency proceeding is pending. See Utah Code 31A-27a-102
     (1)(a) the reasonable value of the assets of the insurer;
     (1)(b) the insurer’s probable total liabilities;
     (1)(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; and
     (1)(d) a recommendation as to:

          (1)(d)(i) whether or not an assessment should be made; and
          (1)(d)(ii) what amount of assessment.
(2)

     (2)(a) Upon the basis of the report provided in Subsection (1), including any supplement or amendment to the report, the receivership court may approve, solely on application by the receiver, one or more assessments against all members of the insurer who are subject to assessment.
     (2)(b) An order approving an assessment under this Subsection (2) shall provide instructions regarding:

          (2)(b)(i) notice of the assessment;
          (2)(b)(ii) deadlines for payment; and
          (2)(b)(iii) other instructions to the receiver for collection of the assessment.
(3) Subject to any applicable legal limit on an ability to assess and with due regard given to assessments that cannot be collected economically, the aggregate assessment shall be for the amount by which the sum of the following exceeds the value of existing assets:

     (3)(a) probable liabilities;
     (3)(b) the expenses of administration; and
     (3)(c) the estimated cost of collection of the assessment.
(4)

     (4)(a) After levy of an assessment under Subsection (2), the receiver shall petition the receivership court for an order directing each member who has not paid the assessment pursuant to the levy to show cause why a judgment for the failure to pay the assessment should not be entered.
     (4)(b) At least 20 days before the return day of the order to show cause described in Subsection (4)(a), the receiver shall give notice of the order to show cause by:

          (4)(b)(i) publication or by first-class mail to each member liable on the assessment mailed to the member’s last-known address as it appears on the insurer’s records; or
          (4)(b)(ii) such other method of notification as the receivership court may direct.
     (4)(c) Failure of the member or subscriber to receive the notice of the assessment or of the order to show cause either within the time specified in the order or at all, is no defense in a proceeding to collect the assessment.
(5) If a member does not appear and serve verified objections upon the receiver on or before the return day of the order to show cause under Subsection (4):

     (5)(a) the receivership court shall make an order adjudging the member liable for the sum of:

          (5)(a)(i) the amount of the assessment against the member pursuant to Subsection (4); and
          (5)(a)(ii) the costs; and
     (5)(b) the receiver has a judgment against the member for the amount described in Subsection (5)(a).
(6) If on or before the return day in the order to show cause described in Subsection (4) the member appears and serves verified objections on the receiver, the receivership court may:

     (6)(a)

          (6)(a)(i) hear and determine the matter; or
          (6)(a)(ii) appoint a referee to hear the matter; and
     (6)(b) make such order as the facts warrant.
(7) The receiver may enforce an order or collect a judgment under Subsection (5) by any lawful means.
(8) An assessment of a subscriber or member of an insurer made by the receiver is prima facie correct if it is pursuant to the order of receivership court:

     (8)(a) fixing the aggregate amount of the assessment against all members or subscribers; and
     (8)(b) approving the classification and formula made by the receiver under this section.
(9) A claim filed by an assessee who fails to pay an assessment, after the conclusion of a legal action by the assessee objecting to the assessment, is considered a late filed claim under Section 31A-27a-701.

  Previous section
Next section  
 Part 5 Contents