§ 27-2-6.1 - Special deposit for benefit of policyholders. - Rhode Island Statutes

SECTION 27-2-6.1

   § 27-2-6.1  Special deposit for benefit ofpolicyholders. – (a) The insurance commissioner may require any insurance company, association,or society incorporated by or organized under the laws of any other state orgovernment which seeks to make within this state any contract of insurance tomake a special deposit as a condition to licensing. The special deposit shallbe held in trust and on deposit for the benefit of all Rhode Islandpolicyholders of the company, association, or society. The special deposit maybe in any amount and form acceptable to the insurance commissioner. The specialdeposit shall be deposited with the insurance commissioner or with the generaltreasurer of this state.

   (b) The special deposit shall be held exclusively for thebenefit of the Rhode Island policyholders and claimants of the company,notwithstanding the source of the special deposit, and in any agreement enteredpursuant to this section the insurer shall grant to the director an interest inthe deposit to secure all present and future obligations of the insurer to thepolicyholders and claimants of the insurer in the state of Rhode Island. Thedirector's interest shall continue until the insurer's obligations are fullysatisfied or until the deposit is released by the director.