§ 27-1-16.1 - Sale by receiver of charter and licenses. - Rhode Island Statutes

SECTION 27-1-16.1

   § 27-1-16.1  Sale by receiver of charterand licenses. – (a) Notwithstanding any decree of forfeiture or finding of insolvency and orderof liquidation, the receiver may, subject to court approval, sell or dispose ofthe charter and/or licenses of the insolvent insurer separate and apart fromits outstanding liabilities or remaining assets.

   (b) The sale may be made after proper advertisement in anational publication on terms and conditions the court deems appropriate. Theorder approving the sale shall provide that the proceeds of the sale shallbecome part of the assets of the liquidation estate, to be distributed in themanner set forth in the pertinent provisions of law governing distribution ofthe estate and the order shall provide that the charter and licenses shallafter this be free and clear from the claims or interests of all claimants,creditors, policyholders, and stockholders of the corporation under liquidation.

   (c) Nothing in this section of law shall be deemed a waiverof capitalization or surplus requirements, or any other condition of licensureimposed by this title which is necessary to obtain approval to do insurancebusiness in this state, or which is necessary to obtain approval for the changein control of a foreign or domestic insurer.

   (d) This section applies retrospectively and shall beliberally construed to accomplish its purpose to provide a more expeditious andeffective procedure for marshalling the assets of the estate in order torealize the maximum amount possible from the sale of those assets and ensurethat the purchasers receive clear and marketable titles. It shall not beconstrued as a limitation upon the receiver, nor shall it exclude in any mannerthe receiver's right to do other acts not specifically enumerated.