As Amended
SEC. 83-34-11. Deferment of member's assessment; plan for repayment; distribution of repayment funds.
The assessment of a member insurer may, after hearing, be ordered deferred in whole or in part upon application by the insurer if, in the opinion of the commissioner, payment of the assessment would render the insurer insolvent or in danger of insolvency, or would otherwise leave the insurer in such a condition that further transaction of the insurer's business would be hazardous to its policyholders, creditors, members, subscribers, stockholders or the public. In the event that payment of an assessment against a member insurer is deferred by order of the commissioner in whole or in part, the amount by which such assessment is deferred must be assessed against other member insurers in the same manner as provided in Section 83-34-9. In its order of deferral, or in such subsequent orders as may be necessary, the commissioner shall prescribe a plan by which the assessment so deferred must be repaid to the association by the impaired insurer with interest at the six-month treasury bill rate adjusted semi-annually. Any profits, dividends or other funds of the association to which the insurer is otherwise entitled may not be distributed to the impaired insurer but must be applied toward repayment of any assessment until the obligation has been satisfied. The association shall distribute the repayments, including any interest thereon, to the other member companies on the basis at which assessments were made.
SOURCES: Laws, 1987, ch. 459, Sec. 7, eff from and after passage (approved April 14, 1987).