TITLE 27
Insurance
CHAPTER 27-20.3
Nonprofit Legal Service Corporations
SECTION 27-20.3-11
§ 27-20.3-11 Rehabilitation, liquidation,
or conservation.
(a) Any rehabilitation, liquidation, administrative supervision, or
conservation of a nonprofit legal service corporation organized under this
chapter shall be conducted under the supervision of the director of business
regulation pursuant to chapters 14.1, 14.2, and 14.3 of this title. The
director of business regulation may apply for an order from the superior court
directing the director of business regulation to rehabilitate, liquidate, or
conserve a nonprofit legal service corporation upon any one or more of the
following grounds:
(1) That the nonprofit legal service corporation is
insolvent; for the purposes of this section, the term "insolvent" means the
inability of the nonprofit legal service corporation to meet its debts and
financial obligations as they become due;
(2) That the nonprofit legal service corporation fails or
refuses to comply with a lawful order of the director of business regulation
reasonably designed to correct unsound business policies or practices which, if
uncorrected, could reasonably lead to insolvency as defined in subdivision (1)
of this subsection; or
(3) That the nonprofit legal service corporation's financial
condition is such as to render its further transaction of business hazardous to
the public or its subscribers or members.
(b) A claim by a health care provider shall not be asserted
against any subscriber or member of the nonprofit legal service corporation in
the event of the rehabilitation, liquidation, conservation, or administrative
supervision of the nonprofit legal service corporation.
History of Section.
(P.L. 1993, ch. 180, § 23.)