Section 221.33 - Assessments(a) As soon as practicable but not more than two years from the date of an order of liquidation under this article of an insurer issuing assessable policies, the liquidator shall make a report to the Commonwealth Court setting forth:(1) the reasonable value of the assets of the insurer;(2) the insurer's probable total liabilities;(3) 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(4) whether or not an assessment should be made and what amount.(b) Upon the basis of the report provided in subsection (a), including any supplements and amendments thereto, the Commonwealth Court may levy one or more assessments against all members of the insurer who are subject to assessment. No member shall be assessed for any loss that occurred when his policy was not in effect. No assessment shall be made or collection procedures begun after two years from the expiration date of a policy. The maximum assessment against any member for each year or part thereof in which a policy or policies issued to such member were in effect shall not exceed one hundred per centum of the average total annual premium during the life of the policy as written in such policy or policies including any increase or reduction in premium as the result of any endorsement thereto. 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.
(c) After levy of assessment under subsection (b) the commissioner shall issue an order directing each member who has not paid the assessment pursuant to the order, to show cause why the liquidator should not pursue a judgment therefor.(d) The liquidator shall give notice of the order to show cause by publication and by first class mail to each member liable thereunder mailed to his last known address as it appears on the insurer's records, at least twenty days before the return day of the order to show cause.(e) If a member does not appear and serve duly verified objections upon the liquidator on or before the return day of the order to show cause under subsection (c), the court shall make an order adjudging the member liable for the amount of the assessment against him and other indebtedness, pursuant to subsection (c), together with costs, and the liquidator shall have a judgment against the member therefor. If on or before such return day, the member appears and serves duly verified objections upon the liquidator, the commissioner may hear and determine the matter or may appoint a referee to hear it and make such order as the facts warrant. In the event that the commissioner determines that such objections do not warrant relief from assessment, the member may request the court to review the matter and vacate the order to show cause.(f) The liquidator may enforce any order or collect any judgment under subsection (e) by any lawful means.1921, May 17, P.L. 789, art. V, § 533, added 1977, Dec. 14, P.L. 280, No. 92, § 2, imd. effective.