§ 27-20.2-11 - Rehabilitation, liquidation, or conservation. - Rhode Island Statutes

SECTION 27-20.2-11

   § 27-20.2-11  Rehabilitation, liquidation,or conservation. – (a) Any rehabilitation, liquidation, administrative supervision, orconservation of a nonprofit optometric service corporation organized under thischapter shall be conducted under the supervision of the director of businessregulation pursuant to chapters 14.1, 14.2, and 14.3 of this title. Thedirector of business regulation may apply for an order from the superior courtdirecting the director of business regulation to rehabilitate, liquidate, orconserve a nonprofit optometric service corporation upon any one or more of thefollowing grounds:

   (1) That the nonprofit optometric service corporation isinsolvent; for the purposes of this section, the term "insolvent" means theinability of the nonprofit optometric service corporation to meet its debts andfinancial obligations as they become due;

   (2) That the nonprofit optometric service corporation failsor refuses to comply with a lawful order of the director of businessregulations reasonably designed to correct unsound business policies orpractices which, if uncorrected, could reasonably lead to insolvency as definedin subdivision (1) of this subsection; or

   (3) That the nonprofit optometric service corporation'sfinancial condition is such as to render its further transaction of businesshazardous to the public or its subscribers or members.

   (b) A claim by a health care provider shall not be assertedagainst any subscriber or member of the nonprofit optometric servicecorporation in the event of the rehabilitation, liquidation, conservation, oradministrative supervision of the nonprofit optometric service corporation.