§ 27-34-18 - Termination and distribution of fund. - Rhode Island Statutes

SECTION 27-34-18

   § 27-34-18  Termination and distribution offund. – (a) The commissioner shall by order terminate the operation of the fund as toany kind of insurance within the scope of this chapter with respect to which heor she has found, after hearing, that there is in effect a statutory orvoluntary plan which:

   (1) Is a permanent plan which is adequately funded or forwhich adequate funding is provided; and

   (2) Extends or will extend to Rhode Island policyholders andresidents protection and benefits with respect to insolvent insurers notsubstantially less favorable and effective to the policyholders and residentsthan the protection and benefits provided with respect to the kind of insuranceunder this chapter.

   (b) The commissioner shall by the same order authorize thediscontinuance of future payments by insurers to the fund with respect to thesame kinds of insurance; provided, that assessments and payments shallcontinue, as necessary, to liquidate covered claims, and related expenses, notcovered by the other plan.

   (c) In the event the operation of any account of the fundshall be terminated as to all kinds of insurance within its scope, the fund assoon as possible after this shall distribute the balance of monies and assetsremaining in the account, after discharge of the functions of the fund withrespect to prior insurer insolvencies not covered by the other plan, togetherwith related expenses, to the insurers which are then writing in this statepolicies of the kinds of insurance in the account, pro rata upon the basis ofthe aggregate of the payments made by the respective insurers to the accountduring the period of five (5) years next preceding the date of the order. Uponcompletion of the distribution with respect to all of the accounts specified in§ 27-34-6, this chapter shall be deemed to have expired.