§ 27-14.3-57 - Ancillary formal proceedings. - Rhode Island Statutes

SECTION 27-14.3-57

   § 27-14.3-57  Ancillary formal proceedings.– (a) If a domiciliary liquidator has been appointed for an insurer not domiciledin this state, the commissioner may file a petition with the superior court forthe county of Providence requesting appointment as ancillary receiver in thisstate:

   (1) If he or she finds that there are sufficient assets ofthe insurer located in this state to justify the appointment of an ancillaryreceiver; and

   (2) If the protection of creditors or policyholders in thisstate requires this.

   (b) The court may issue an order appointing an ancillaryreceiver in whatever terms it shall deem appropriate. The filing or recordingof the order with the recorders of deeds in this state imparts the same noticeas a deed, bill of sale, or other evidence of title duly filed or recorded withthat recorder of deeds.

   (c) When a domiciliary liquidator has been appointed in areciprocal state, then the ancillary receiver appointed in this state may,whenever necessary, aid and assist the domiciliary liquidator in recoveringassets of the insurer located in this state. The ancillary receiver shall, assoon as practicable, liquidate from their respective securities those specialdeposit claims and secured claims which are proved and allowed in the ancillaryproceedings in this state, and shall pay the necessary expenses of theproceedings. He or she shall promptly transfer all remaining assets, books,accounts, and records to the domiciliary liquidator. Subject to this section,the ancillary receiver and his or her deputies shall have the same powers andbe subject to the same duties with respect to the administration of assets as aliquidator of an insurer domiciled in this state.

   (d) When a domiciliary liquidator has been appointed in thisstate, ancillary receivers appointed in reciprocal states shall have, as toassets and books, accounts, and other records in their respective states,corresponding rights, duties, and powers to those provided in subsection (c) ofthis section for ancillary receivers appointed in this state.