§ 27-14.3-17 - Rehabilitation order. - Rhode Island Statutes

SECTION 27-14.3-17

   § 27-14.3-17  Rehabilitation order. –(a) An order to rehabilitate the business of a domestic insurer, or an alieninsurer domiciled in this state, shall appoint the commissioner and his or hersuccessors in office the rehabilitator, and shall direct the rehabilitator totake possession of the assets of the insurer, and to administer them under thegeneral supervision of the court. The filing or recording of the order with theclerk of the superior court for the county of Providence or recorder of deedsof the city or town in which the principal business of the company isconducted, or the city or town in which its principal office or place ofbusiness is located, shall impart the same notice as a deed, bill of sale, orother evidence of title duly filed or recorded with that recorder of deedswould have imparted. The order to rehabilitate the insurer shall by operationof law vest title to all assets of the insurer in the rehabilitator.

   (b) Any order issued under this section shall requireaccountings to the court by the rehabilitator. Accountings shall be at thoseintervals as the court specifies in its order, but no less frequently thansemiannually. Each accounting shall include a report concerning therehabilitator's opinion as to the likelihood that a plan under §27-14.3-18(f) will be prepared by the rehabilitator and the timetable for doingso.

   (c) Entry of an order of rehabilitation shall not constitutean anticipatory breach of any contracts of the insurer nor shall it be groundsfor retroactive revocation or retroactive cancellation of any contracts of theinsurer, unless the revocation or cancellation is done by the rehabilitatorpursuant to § 27-14.3-18.