Barger

Statement of the Case

At issue in this appeal is the disposition of moneys collected through an assessment of the policyholders of All-Coverage Insurance Exchange, a reciprocal insurer, appellant herein. The assessment, levied pursuant to the provisions of section 1062 of the Insurance Code, produced a fund which was more than sufficient to pay all approved claims in full.

The trial court ordered that the proceeds of the assessment in excess of the amount required to pay claims be refunded to the policyholders from whom the moneys had been collected. Appellant contends that these excess funds should be used to restore its surplus and that the court below erred in instructing respondent to refund the excess assessment moneys prior to ruling on appellant’s petition for rehabilitation.

We have concluded that there is no merit in any of appellant’s contentions. The order presented for review was made in conformity with both the applicable law and the dictates of equity.

Statement of the Facts

On November 21, 1962, the commissioner was appointed conservator of appellant pursuant to section 1011 of the Insurance Code because of insolvency, false reports of financial…