TITLE 27
Insurance
CHAPTER 27-20
Nonprofit Medical Service Corporations
SECTION 27-20-24
§ 27-20-24 Rehabilitation, liquidation, or
conservation.
(a) Any rehabilitation, liquidation, administrative supervision, or
conservation of a nonprofit medical 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 medical service corporation upon any one or more of the
following grounds:
(1) That the nonprofit medical service corporation is
insolvent; for the purposes of this section, the term "insolvent" means the
inability of the nonprofit medical service corporation to meet its debts and
financial obligations as they become due;
(2) That the nonprofit medical 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);
or
(3) That the nonprofit medical 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 medical service corporation
in the event of the rehabilitation, liquidation, conservation, or
administrative supervision of the nonprofit medical service corporation.
History of Section.
(P.L. 1993, ch. 180, § 17.)