§ 7430. Levy of assessments; determination of liability of members.
(a) Within three years from the date of an order of rehabilitation or
liquidation of a domestic mutual insurer filed in the office of the
clerk of the county in which the insurer had its principal office, the
superintendent may make a report to the court setting forth:

(1) the reasonable value of the insurer's assets;

(2) its probable liabilities; and

(3) the probable necessary assessment, if any, to pay all possible
claims and expenses in full, including expenses of administration.

(b) (1) Upon the basis of such report, including any amendments, the
court, ex parte, may levy one or more assessments against all members of
such insurer who, as shown by the records of the company, were members
at any time within one year prior to the date of the issuance of the
order to show cause under section seven thousand four hundred seventeen
of this article.

(2) The assessments shall cover the excess of the insurer's probable
liabilities over the reasonable value of its assets and the estimated
cost of collection and percentage of uncollectibility thereof.

(3) The total assessments against any member with respect to any
policy, whether levied by the board of directors of such insurer, the
superintendent in liquidation or rehabilitation of such insurer, or
otherwise, and whether levied to make good an impairment of required
minimum surplus or for any other purpose under this chapter, shall be
for no greater amount than that specified in the by-laws and policies of
that member and may be limited as prescribed in subsection (a) of
section four thousand one hundred eleven of this chapter. However, if
the court finds that such policy was issued at a rate of premium below
the minimum rate lawfully permitted for the risk insured, the court may
determine the upper limit of such assessment upon the basis of an
adequate rate for such insurance.

(4) No such assessment shall be levied against any member with respect
to any non-assessable policy issued in accordance with the laws of this
state.

(c) Thereafter, upon the filing of a further detailed report by the
superintendent, the court shall issue an order directing each member of
such insurer if he shall not pay the amount assessed against him to the
superintendent on or before a day to be specified in said order, to show
cause why he should not be held liable to pay such assessment together
with costs as set forth in subsection (e) hereof and why the
superintendent should not have judgment therefor.

(d) The superintendent shall at least twenty days before the return
day of the order cause a notice of such order setting forth a brief
summary of the contents of such order to be published in such manner as
shall be directed by the court and mailed to each member at his last
known address appearing on the records of the insurer, or at his last
known address, if no address so appears.

(e) On the return day of such order to show cause, if such member
shall not appear and serve verified objections upon the superintendent,
the court shall make an order adjudging that such member is liable for
the amount of such assessment together with ten dollars costs and
directing that the superintendent may have judgment therefor. If the
member shall appear and serve verified objections upon the
superintendent there shall be a full hearing before the court or a
referee to hear and determine, who, after such hearing, shall make an
order either negativing the liability of such member to pay the
assessment or directing that the superintendent may have judgment for
the whole or some part of the assessment and twenty-five dollars costs
and necessary disbursements incurred at such hearing.

(f) A judgment upon any such order, whether granted by a court or
referee, shall have the same force and effect, and may be entered and
docketed, and may be appealed from as if it were a judgment in an
original action brought in the court in which the proceeding is pending.