§ 27-14.3-55 - Liquidation of property of foreign or alien insurers found in this state. - Rhode Island Statutes

SECTION 27-14.3-55

   § 27-14.3-55  Liquidation of property offoreign or alien insurers found in this state. – (a) If no domiciliary receiver has been appointed, the commissioner may applyto the superior court for the county of Providence by verified petition for anorder directing him or her to liquidate the assets found in this state of aforeign insurer or an alien insurer not domiciled in this state, on any of thefollowing grounds:

   (1) Any of the grounds in § 27-14.3-16 or 27-14.3-21; or

   (2) Any of the grounds specified in § 27-14.3-54(a)(2)through (4).

   (b) When an order is sought under subsection (a) of thissection, the court shall cause the insurer to be given notice and time torespond to it as is reasonable under the circumstances.

   (c) If it shall appear to the court that the best interestsof creditors, policyholders, and the public require, the court may issue anorder to liquidate in whatever terms it shall deem appropriate. The filing orrecording of the order with the clerk of the superior court for the county ofProvidence, or the recorder of deeds of the city or town in which the principalbusiness of the company is located or the city or town in which its principaloffice or place of business is located, shall impart the same notice as a deed,bill of sale, or other evidence of title duly filed or recorded with thatrecorder of deeds would have imparted.

   (d) If a domiciliary liquidator is appointed in a reciprocalstate while a liquidation is proceeding under this section, the liquidatorunder this section shall after this act as ancillary receiver under §27-14.3-57. If a domiciliary liquidator is appointed in a nonreciprocal statewhile a liquidation is proceeding under this section, the liquidator under thissection may petition the court for permission to act as ancillary receiverunder § 27-14.3-57.

   (e) On the same grounds as are specified in subsection (a) ofthis section, the commissioner may petition any appropriate federal districtcourt to be appointed receiver to liquidate that portion of the insurer'sassets and business over which the court will exercise jurisdiction, or anylesser of the assets and business that the commissioner deems desirable for theprotection of the policyholders and creditors in this state.

   (f) The court may order the commissioner, when he or she hasliquidated the assets of a foreign or alien insurer under this section, to paythe claims of residents of this state against the insurer under any rules as tothe liquidation of insurers under this chapter as are compatible with theprovisions of this section.