Insurers' Rehabilitation and Liquidation Act
§ 27-14.3-55 Liquidation of property of
foreign or alien insurers found in this state.
(a) If no domiciliary receiver has 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 liquidate the assets found in this state of a
foreign insurer or an alien insurer not domiciled in this state, on any of the
(1) Any of the grounds in § 27-14.3-16 or 27-14.3-21; or
(2) Any of the grounds specified in § 27-14.3-54(a)(2)
(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) If it shall appear to the court that the best interests
of creditors, policyholders, and the public require, the court may issue an
order to liquidate in whatever terms it shall deem appropriate. The filing or
recording of the order with the clerk of the 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 or the city or town in which its principal
office or place of business 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) If a domiciliary liquidator is appointed in a reciprocal
state while a liquidation is proceeding under this section, the liquidator
under this section shall after this act as ancillary receiver under §
27-14.3-57. If a domiciliary liquidator is appointed in a nonreciprocal state
while a liquidation is proceeding under this section, the liquidator under this
section may petition the court for permission to act as ancillary receiver
under § 27-14.3-57.
(e) On the same grounds as are specified in subsection (a) of
this section, the commissioner may petition any appropriate federal district
court to be appointed receiver to liquidate that portion of the insurer's
assets and business over which the court will exercise jurisdiction, or any
lesser of the assets and business that the commissioner deems desirable for the
protection of the policyholders and creditors in this state.
(f) The court may order the commissioner, when he or she has
liquidated the assets of a foreign or alien insurer under this section, to pay
the claims of residents of this state against the insurer under any rules as to
the liquidation of insurers under this chapter as are compatible with the
provisions of this section.
History of Section.
(P.L. 1993, ch. 248, § 1.)