§ 27-14.3-20 - Termination of rehabilitation. - Rhode Island Statutes

SECTION 27-14.3-20

   § 27-14.3-20  Termination ofrehabilitation. – (a) Whenever the commissioner believes further attempts to rehabilitate aninsurer would substantially increase the risk of loss to creditors,policyholders, or the public, or would be futile, the commissioner may petitionthe superior court for the county of Providence for an order of liquidation. Apetition under this subsection shall have the same effect as a petition under§ 27-14.3-21. The superior court for the county of Providence shall permitthe directors of the insurer to take any actions as are reasonably necessary todefend against the petition and may order payment from the estate of theinsurer of any costs and other expenses of defense as justice may require.

   (b) The protection of the interests of the insured,claimants, and the public requires the timely performance of all insurancepolicy obligations. If the payment of policy obligations is suspended insubstantial part for a period of six (6) months at any time after theappointment of the rehabilitator and the rehabilitator has not filed anapplication for approval of a plan under § 27-14.3-18(f), therehabilitator shall petition the court for an order of liquidation on thegrounds of insolvency.

   (c) The rehabilitator may at any time petition the superiorcourt for the county of Providence for an order terminating rehabilitation ofan insurer. The court shall also permit the directors of the insurer topetition the court for an order terminating rehabilitation of the insurer andmay order payment from the estate of the insurer of any costs and otherexpenses of the petition as justice may require. If the superior court for thecounty of Providence finds that rehabilitation has been accomplished and thatgrounds for rehabilitation under § 27-14.3-16 no longer exist, it shallorder that the insurer be restored to possession of its property and thecontrol of the business. The superior court for the county of Providence mayalso make that finding and issue that order at any time upon its own motion.