TITLE 27

Insurance

CHAPTER 27-14.3

Insurers' Rehabilitation and Liquidation Act

SECTION 27-14.3-54



   § 27-14.3-54  Conservation of property of

foreign or alien insurers found in this state. –

(a) If a domiciliary liquidator has not been appointed, the commissioner may

apply to the superior court for the county of Providence by verified petition

for an order directing him or her to act as conservator to conserve the

property of an alien insurer not domiciled in this state or a foreign insurer

on any one or more of the following grounds:



   (1) Any of the grounds in § 27-14.3-16;



   (2) That any of its property has been sequestered by official

action in its domiciliary state, or in any other state;



   (3) That enough of its property has been sequestered in a

foreign country to give reasonable cause to fear that the insurer is or may

become insolvent; and/or



   (4)(i) That its certificate of authority to do business in

this state has been revoked or that none was ever issued, and



   (ii) That there are residents of this state with outstanding

claims or outstanding policies.



   (b) When an order is sought under subsection (a) of this

section the court shall cause the insurer to be given notice and time to

respond to it as is reasonable under the circumstances.



   (c) The court may issue the order in whatever terms it shall

deem appropriate. The filing or recording of the order with the clerk of

superior court for the county of Providence or the recorder of deeds of the

city or town in which the principal business of the company is located shall

impart the same notice as a deed, bill of sale, or other evidence of title duly

filed or recorded with that recorder of deeds would have imparted.



   (d) The conservator may at any time petition for, and the

court may grant, an order under § 27-14.3-55 to liquidate the assets of a

foreign or alien insurer under conservation, or, if appropriate, for an order

under § 27-14.3-57, to be appointed ancillary receiver.



   (e) The conservator may at any time petition the court for an

order terminating the conservation of an insurer. If the court finds that the

conservation is no longer necessary, it shall order that the insurer be

restored to possession of its property and the control of it's business. The

court may also make the finding and issue the order at any time upon the motion

of any interested party, but if the motion is denied, all costs shall be

assessed against the party.



History of Section.

(P.L. 1993, ch. 248, § 1.)