§ 27-12.2-5 - Prohibited acts during supervision. - Rhode Island Statutes

SECTION 27-12.2-5

   § 27-12.2-5  Prohibited acts duringsupervision. – During the period of supervision, the commissioner or his or her designatedappointee shall serve as the administrative supervisor. The commissioner mayprovide that the insurer may not do any of the following acts during the periodof supervision, without the prior approval of the commissioner or his or herappointed supervisor:

   (1) Dispose of, convey, or encumber any of its assets or itsbusiness in force;

   (2) Withdraw any of its bank accounts;

   (3) Lend any of its funds;

   (4) Invest any of its funds;

   (5) Transfer any of its property;

   (6) Incur any debt, obligation, or liability;

   (7) Merge or consolidate with another company;

   (8) Approve new premiums or renew any policies;

   (9) Enter into any new reinsurance contract or treaty;

   (10) Terminate, surrender, forfeit, convert, or lapse anyinsurance policy, certificate, or contract, except for nonpayment of premiumsdue;

   (11) Release, pay, or refund premium deposits, accrued cashor loan values, unearned premiums, or other reserves on any insurance policy,certificate, or contract;

   (12) Make any material change in management; or

   (13) Increase salaries and benefits of officers or directorsor the preferential payment of bonuses, dividends, or other payments deemedpreferential.