reglab/statecodes huggingface dataset:
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-13.1 - Examinations › Section 27-13.1-7. - Cost of examinations.

§ 27-13.1-7. Cost of examinations.
(a)
The total cost of the examinations shall be borne by the examined companies and shall include the following expenses:
(1)
One hundred fifty percent (150%) of the total salaries and benefits paid to the examining personnel of the banking and insurance division engaged in those examinations less any salary reimbursements;
(2)
All reasonable technology costs related to the examination process. Technology costs shall include the actual cost of software and hardware utilized in the examination process and the cost of training examination personnel in the proper use of the software or hardware;
(3)
All necessary and reasonable education and training costs incurred by the state to maintain the proficiency and competence of the examining personnel. All these costs shall be incurred in accordance with appropriate state of Rhode Island regulations, guidelines and procedures.
(b)
Expenses incurred pursuant to subsections (a)(2) and (a)(3) of this section shall be allocated equally to each company domiciled in Rhode Island no more frequently than annually and shall not exceed an annual average assessment of three thousand five hundred dollars ($3,500) per company for any given three (3) calendar year period. All revenues collected pursuant to this section shall be deposited as general revenues. That assessment shall be in addition to any taxes and fees payable to the state.
History of Section.
P.L. 1992, ch. 445, § 1; P.L. 1995, ch. 370, art. 40, § 86; P.L. 2001, ch. 122, § 8.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-13.1 - Examinations › Section 27-13.1-8. - Immunity from liability.

§ 27-13.1-8. Immunity from liability.
(a)
No cause of action shall arise nor shall any liability be imposed against the director, the directors authorized representatives or an examiner appointed by the director for any statements made or conduct performed in good faith while carrying out the provisions of this chapter.
(b)
No cause of action shall arise, nor shall any liability be imposed against any person for the act of communicating or delivering information or data to the director or the director’s authorized representative or examiner pursuant to an examination made under this chapter, if the act of communication or delivery was performed in good faith and without fraudulent intent or the intent to deceive.
(c)
This section does not abrogate or modify in any way any common law or statutory privilege or immunity heretofore enjoyed by any person identified in subsection (a) herein.
(d)
A person identified in subsection (a) herein shall be entitled to an award of attorney’s fees and costs if he or she is the prevailing party in a civil cause of action for libel, slander or any other relevant tort arising out of activities in carrying out the provisions of this chapter and the party bringing the action was not substantially justified in doing so. For purposes of this section a proceeding is “substantially justified” if it has a reasonable basis in law or fact at the time that it was initiated.
History of Section.
P.L. 2009, ch. 301, § 2; P.L. 2009, ch. 302, § 2.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.1 - Administrative Supervision › Section 27-14.1-1. - Definitions.

§ 27-14.1-1. Definitions.
As used in this chapter:
(1)
“Consent” means agreement to administrative supervision by the insurer;
(2)
“Exceeded its powers” means the following conditions:
(i)
The insurer has refused to permit examination of its books, papers, accounts, records, or affairs by the commissioner, his or her deputies, employees or duly commissioned examiners;
(ii)
A domestic insurer has unlawfully removed from this state books, papers, accounts, or records necessary for an examination of the insurer;
(iii)
The insurer has failed to promptly comply with the applicable financial reporting statutes or rules and departmental requests relating thereto;
(iv)
The insurer has neglected or refused to observe an order of the commissioner to make good, within the time prescribed by law, any prohibited deficiency in its capital, capital stock or surplus;
(v)
The insurer is continuing to transact insurance or write business after its license has been revoked or suspended by the commissioner;
(vi)
The insurer, by contract or otherwise, has unlawfully or has in violation of an order of the commissioner or has without first having obtained written approval of the commissioner if approval is required by law:
(A)
Totally reinsured its entire outstanding business; or
(B)
Merged or consolidated substantially its entire property or business with another insurer;
(vii)
The insurer engaged in any transaction in which it is not authorized to engage under the laws of this state; or
(viii)
The insurer refused to comply with a lawful order of the commissioner;
(3)
“Insurer” means and includes every person engaged as indemnitor, surety or contractor in the business of entering into contracts of insurance or of annuities as limited to:
(i)
Any insurer who is doing an insurer business, or has transacted insurance in this state, and against whom claims arising from that transaction may exist now or in the future; and
(ii)
Any fraternal benefit society which is subject to the provisions of this title; and
(iii)
Any insurer writing “mono line business” which means any insurer, which deals exclusively in surety bonding.
History of Section.
P.L. 1991, ch. 348, § 1; P.L. 2011, ch. 157, § 1; P.L. 2011, ch. 275, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.1 - Administrative Supervision › Section 27-14.1-2. - Applicability.

§ 27-14.1-2. Applicability.
The provisions of this chapter apply to:
(1)
All domestic insurers, including a protected cell company organized under the Protected Cell Companies Act, chapter 64 of this title, and any of its protected cells established pursuant to that chapter, to the extent not inconsistent with the provisions of that chapter; and
(2)
Any other insurer doing business in this state whose state of domicile has asked the commissioner to apply the provisions of this chapter as regards that insurer.
History of Section.
P.L. 1991, ch. 348, § 1; P.L. 1999, ch. 22, § 4.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.1 - Administrative Supervision › Section 27-14.1-3. - Notice to comply with written requirements of commissioner — Noncompliance — Administrative supervision.

§ 27-14.1-3. Notice to comply with written requirements of commissioner — Noncompliance — Administrative supervision.
(a)
An insurer may be subject to administrative supervision by the commissioner if upon examination or at any other time it appears in the commissioner’s discretion that:
(1)
The insurer’s condition renders the continuance of its business hazardous to the public or to its insured;
(2)
The insurer appears to have exceeded its powers granted under its certificate of authority and applicable law;
(3)
The insurer has failed to comply with the applicable provisions of the insurance code;
(4)
The business of the insurer is being conducted fraudulently; or
(5)
The insurer gives its consent.
(b)
If the commissioner determines that the conditions set forth in subsection (a) of this section exist, the commissioner shall:
(1)
Notify the insurer of his or her determination;
(2)
Furnish to the insurer a written list of the requirements to abate this determination; and
(3)
Notify the insurer that it is under the supervision of the commissioner and that the commissioner is applying and effectuating the provisions of this chapter. The action by the commissioner shall be subject to review pursuant to the Administrative Procedures Act, chapter 35 of title 42.
(c)
If placed under administrative supervision, the insurer shall have sixty (60) days, or another period of time as designated by the commissioner, to comply with the requirements of the commissioner subject to the provisions of this chapter.
(d)
If it is determined after notice and hearing that the conditions giving rise to the supervision still exist at the end of the supervision period specified in subsection (c) of this section, the commissioner may extend the period.
(e)
If it is determined that none of the conditions giving rise to the supervision exist, the commissioner shall release the insurer from supervision.
History of Section.
P.L. 1991, ch. 348, § 1; P.L. 2011, ch. 157, § 1; P.L. 2011, ch. 275, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.1 - Administrative Supervision › Section 27-14.1-4. - Confidentiality of certain proceedings and records.

§ 27-14.1-4. Confidentiality of certain proceedings and records.
(a)
Notwithstanding any other provision of law and except as set forth in this section, proceedings, hearings, notices, correspondence, reports, records, and other information in the possession of the commissioner or the department of business regulation relating to the supervision of any insurer are confidential except as provided by this section.
(b)
The personnel of the department of business regulation shall have access to these proceedings, hearings, notices, correspondence, reports, records, or information as permitted by the commissioner.
(c)
The commissioner may open the proceedings or hearings or disclose the notices, correspondence, reports, records, or information to a department, agency, or instrumentality of this or another state of the United States if the commissioner determines that the disclosure is necessary or proper for the enforcement of the laws of this or another state of the United States.
(d)
The commissioner may open the proceedings or hearings or make public the notices, correspondence, reports, records, or other information if the commissioner deems that it is in the best interest of the public or in the best interest of the insurer, its insureds, creditors, or the general public.
(e)
This section does not apply to hearings, notices, correspondence, reports, records, or other information obtained upon the appointment of a receiver for the insurer by a court of competent jurisdiction.
History of Section.
P.L. 1991, ch. 348, § 1; P.L. 2011, ch. 157, § 1; P.L. 2011, ch. 275, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.1 - Administrative Supervision › Section 27-14.1-5. - Prohibited acts during period of supervision.

§ 27-14.1-5. Prohibited acts during period of supervision.
During the period of supervision, the commissioner or his or her designated appointee shall serve as the administrative supervisor. The commissioner may provide that the insurer may not do any of the following acts during the period of supervision without the prior approval of the commissioner or his or her appointed supervisor:
(1)
Dispose of, convey, or encumber any of its assets or its business in force;
(2)
Withdraw any of its bank accounts;
(3)
Lend any of its funds;
(4)
Invest any of its funds;
(5)
Transfer any of its property;
(6)
Incur any debt, obligation or liability;
(7)
Merge or consolidate with another company;
(8)
Approve new premiums or renew any policies;
(9)
Enter into any new reinsurance contract or treaty;
(10)
Terminate, surrender, forfeit, convert, or lapse any insurance policy, certificate, or contract, except for nonpayment of premiums due;
(11)
Release, pay, or refund premium deposits, accrued cash or loan values, unearned premiums, or other reserves on any insurance policy, certificate, or contract;
(12)
Make any material change in management; or
(13)
Increase salaries and benefits of officers or directors or the preferential payment of bonuses, dividends, or other payments deemed preferential.
History of Section.
P.L. 1991, ch. 348, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.1 - Administrative Supervision › Section 27-14.1-6. - Review and stay of action.

§ 27-14.1-6. Review and stay of action.
During the period of supervision the insurer may contest an action taken or proposed to be taken by the supervisor specifying the manner in which the action being complained of would not result in improving the condition of the insurer. Denial of the insurer’s request upon reconsideration entitles the insurer to request a proceeding under the Administrative Procedures Act, chapter 35 of title 42.
History of Section.
P.L. 1991, ch. 348, § 1; P.L. 2011, ch. 157, § 1; P.L. 2011, ch. 275, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.1 - Administrative Supervision › Section 27-14.1-7. - Administrative election of proceedings.

§ 27-14.1-7. Administrative election of proceedings.
Nothing contained in this chapter shall preclude the commissioner from initiating judicial proceedings to place an insurer in conservation, rehabilitation, or liquidation proceedings or other delinquency proceedings, however designated under the laws of this state, regardless of whether the commissioner has previously initiated administrative supervision proceedings under this chapter against the insurer.
History of Section.
P.L. 1991, ch. 348, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.1 - Administrative Supervision › Section 27-14.1-9. - Other laws — Conflicts — Meetings between the commissioner and the supervisor.

§ 27-14.1-9. Other laws — Conflicts — Meetings between the commissioner and the supervisor.
Notwithstanding any other provision of law, the commissioner may meet with a supervisor appointed under this chapter and with the attorney or other representative of the supervisor, without the presence of any other person, at the time of any proceeding or during the pendency of any proceeding held under the authority of this chapter to carry out the commissioner’s duties under this chapter or for the supervisor to carry out his or her duties under this chapter.
History of Section.
P.L. 1991, ch. 348, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.1 - Administrative Supervision › Section 27-14.1-10. - Immunity.

§ 27-14.1-10. Immunity.
There shall be no liability on the part of, and no cause or action of any nature shall arise against, the insurance commissioner or the department of business regulation or its employees or agents for any action taken by them in the performance of their powers and duties under this chapter.
History of Section.
P.L. 1991, ch. 348, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.2 - Standards and Director’s Authority for Companies Deemed to Be in Hazardous Financial Condition › Section 27-14.2-1. - Purpose.

§ 27-14.2-1. Purpose.
(a)
The purpose of this chapter is to set forth the standards which the director of the department of business regulation may use for identifying insurers found to be in a condition as to render the continuance of their business hazardous to the public or to holders of their policies or certificates of insurance.
(b)
This chapter shall not be interpreted to limit the powers granted to the director by any laws or parts of laws of this state.
History of Section.
P.L. 1992, ch. 445, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.2 - Standards and Director’s Authority for Companies Deemed to Be in Hazardous Financial Condition › Section 27-14.2-4. - Judicial review.

§ 27-14.2-4. Judicial review.
Any order or decision of the director shall be subject to review in accordance with the Administrative Procedures Act, chapter 35 of title 42, at the instance of any party to the proceedings whose interests are substantially affected.
History of Section.
P.L. 1992, ch. 445, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.3 - Insurers’ Rehabilitation and Liquidation Act › Section 27-14.3-1. - Short title — Construction — Purpose.

§ 27-14.3-1. Short title — Construction — Purpose.
(a)
This chapter shall be cited as the “Insurers’ Rehabilitation and Liquidation Act.”
(b)
This chapter shall not be interpreted to limit the powers granted the commissioner by other provisions of the law.
(c)
This chapter shall be liberally construed to effect the purpose stated in subsection (d) of this section.
(d)
The purpose of this chapter is the protection of the interests of insured, claimants, creditors, and the public generally with minimum interference with the normal prerogatives of the owners and managers of insurers, through:
(1)
Early detection of any potentially dangerous condition in an insurer, and prompt application of appropriate corrective measures;
(2)
Improved methods for rehabilitating insurers, involving the cooperation and management expertise of the insurance industry;
(3)
Enhanced efficiency and economy of liquidation, through clarification of the law, to minimize legal uncertainty and litigation;
(4)
Equitable apportionment of any unavoidable loss;
(5)
Lessening the problems of interstate rehabilitation and liquidation by facilitating cooperation between states in the liquidation process, and by extending the scope of personal jurisdiction over debtors of the insurer outside of this state;
(6)
Regulation of the insurance business by the impact of the law relating to delinquency procedures and substantive rules on the entire insurance business; and
(7)
Providing for a comprehensive scheme for the rehabilitation and liquidation of insurance companies and those subject to this chapter as part of the regulation of the business of insurance, insurance industry, and insurers in this state. Proceedings in cases of insurer insolvency and delinquency are deemed an integral aspect of the business of insurance and are of vital public interest and concern.
History of Section.
P.L. 1993, ch. 248, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.3 - Insurers’ Rehabilitation and Liquidation Act › Section 27-14.3-2. - Applicability.

§ 27-14.3-2. Applicability.
The proceedings authorized by this chapter may be applied to:
(1)
All insurers who are doing, or have done, an insurance business in this state, including a protected cell company organized under the Protected Cell Companies Act, chapter 64 of this title, and any of its protected cells established pursuant to that chapter, to the extent not inconsistent with the provisions of that chapter, and against whom claims arising from that business may exist now or in the future;
(2)
All insurers who purport to do an insurance business in this state, including a protected cell company organized under the Protected Cell Companies Act, chapter 64 of this title, and any of its protected cells established pursuant to that chapter, to the extent not inconsistent with the provisions of that chapter;
(3)
All insurers who have insured resident in this state;
(4)
All other persons organized or in the process of organizing with the intent to do an insurance business in this state, including a protected cell company organized under the Protected Cell Companies Act, chapter 64 of this title, and any of its protected cells established pursuant to that chapter, to the extent not inconsistent with the provisions of that chapter;
(5)
All nonprofit service plans and all fraternal benefit societies and beneficial societies;
(6)
All title insurance companies;
(7)
All prepaid health care delivery plans; and
(8)
All nonprofit health service corporations, nonprofit hospital service corporations, nonprofit medical service corporations, nonprofit dental service corporations, nonprofit optometric service corporations, nonprofit legal service corporations, health maintenance organizations, and risk retention groups pursuant to chapters 19, 20, 20.1, 20.2, 20.3, 41, and 46 of this title.
History of Section.
P.L. 1993, ch. 248, § 1; P.L. 1999, ch. 22, § 5.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.3 - Insurers’ Rehabilitation and Liquidation Act › Section 27-14.3-5. - Injunctions and orders.

§ 27-14.3-5. Injunctions and orders.
(a)
Any receiver appointed in a proceeding under this chapter may at any time apply for, and any court of general jurisdiction may grant, restraining orders, preliminary and permanent injunctions, and other orders as may be deemed necessary and proper to prevent:
(1)
The transaction of further business;
(2)
The transfer of property;
(3)
Interference with the receiver or with a proceeding under this chapter;
(4)
Waste of the insurer’s assets;
(5)
Dissipation and transfer of bank accounts;
(6)
The institution or further prosecution of any actions or proceedings;
(7)
The obtaining of preferences, judgments, attachments, garnishments, or liens against the insurer, its assets, or its policyholders;
(8)
The levying of execution against the insurer, its assets, or its policyholders;
(9)
The making of any sale or deed for nonpayment of taxes or assessments that would lessen the value of the assets of the insurer;
(10)
The withholding from the receiver of books, accounts, documents, or other records relating to the business of the insurer; or
(11)
Any other threatened or contemplated action that might lessen the value of the insurer’s assets or prejudice the rights of policyholders, creditors, or shareholders, or the administration of any proceeding under this chapter.
(b)
The receiver may apply to any court outside of the state for the relief described in § 27-14.3-4(a).
History of Section.
P.L. 1993, ch. 248, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.3 - Insurers’ Rehabilitation and Liquidation Act › Section 27-14.3-6. - Cooperation of officers, owners, and employees.

§ 27-14.3-6. Cooperation of officers, owners, and employees.
(a)
Any officer, manager, director, trustee, owner, employee, insurance producer, or agent of any insurer, or any other persons with authority over or in charge of any segment of the insurer’s affairs, shall cooperate with the commissioner in any proceeding under this chapter or any investigation preliminary to the proceeding. The term “person” as used in this section includes any person who exercises control directly or indirectly over activities of the insurer through any holding company or other affiliate of the insurer. The term “cooperate” includes, but shall not be limited to, the following:
(1)
To reply promptly in writing to any inquiry from the commissioner requesting a reply; and
(2)
To make available to the commissioner any books, accounts, documents, or other records or information or property of or pertaining to the insurer and in his or her possession, custody or control.
(b)
No person shall obstruct or interfere with the commissioner in the conduct of any delinquency proceeding or any investigation preliminary or incidental to that proceeding.
(c)
This section shall not be construed to abridge existing legal rights, including the right to resist a petition for liquidation or other delinquency proceedings, or other orders.
(d)
Any person included within subsection (a) of this section who fails to cooperate with the commissioner, or any person who obstructs or interferes with the commissioner in the conduct of any delinquency proceedings or any investigation preliminary or incidental to that proceeding, or who violates any order the commissioner issued validly under this chapter may:
(1)
Be sentenced to pay a fine not exceeding ten thousand dollars ($10,000) or to undergo imprisonment for a term of not more than one year, or both; or
(2)
After a hearing, be subject to the imposition by the commissioner of a civil penalty not to exceed ten thousand dollars ($10,000) and shall also be subject to the revocation or suspension of any insurance licenses issued by the commissioner.
History of Section.
P.L. 1993, ch. 248, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.3 - Insurers’ Rehabilitation and Liquidation Act › Section 27-14.3-8. - Condition on release from delinquency proceedings.

§ 27-14.3-8. Condition on release from delinquency proceedings.
No insurer that is subject to any delinquency proceedings, whether formal or informal, administrative or judicial, shall:
(1)
Be released from the proceeding, unless the proceeding is converted into a judicial rehabilitation or liquidation proceeding;
(2)
Be permitted to solicit or accept new business or request or accept the restoration of any suspended or revoked license or certificate of authority;
(3)
Be returned to the control of its shareholders or private management; or
(4)
Have any of its assets returned to the control of its shareholders or private management until all payments of or on account of the insurer’s contractual obligations by all guaranty associations, along with all expenses thereof and interest on all the payments and expenses, shall have been repaid to the guaranty associations or a plan of repayment by the insurer shall have been approved by the guaranty association.
History of Section.
P.L. 1993, ch. 248, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.3 - Insurers’ Rehabilitation and Liquidation Act › Section 27-14.3-10. - Court’s seizure order.

§ 27-14.3-10. Court’s seizure order.
(a)
The commissioner may file in the superior court for the county of Providence a petition alleging, with respect to a domestic insurer:
(1)
That there exists any grounds that would justify a court order for a formal delinquency proceeding against an insurer under this chapter;
(2)
That the interests of policyholders, creditors, or the public will be endangered by delay; and
(3)
The contents of an order deemed necessary by the commissioner.
(b)
Upon a filing under subsection (a) of this section, the court may issue ex parte and without a hearing the requested order which shall direct the commissioner to take possession and control of all or a part of the property, books, accounts, documents, and other records of an insurer, and of the premises occupied by it for transaction of its business, and until further order of the court enjoin the insurer and its officers, managers, agents and employees from disposition of its property and from the transaction of its business except with the written consent of the commissioner.
(c)
The court shall specify in the order what its duration shall be, which shall be that time as the court deems necessary for the commissioner to ascertain the condition of the insurer. On the motion of either party or on its own motion, the court may hold hearings as it deems desirable after providing notice as it deems appropriate, and may extend, shorten, or modify the terms of the seizure order. The court shall vacate the seizure order if the commissioner fails to commence a formal proceeding under this chapter after having had a reasonable opportunity to do so. An order of the court pursuant to a formal proceeding under this chapter shall by itself vacate the seizure order.
(d)
Entry of a seizure order under this section shall not constitute an anticipatory breach of any contract of the insurer.
(e)
An insurer subject to an ex parte order under this section may petition the court at any time after the issuance of the order for a hearing and review of the order. The court shall hold a hearing and review not more than fifteen (15) days after the request. A hearing under this subsection may be held privately in chambers and it shall be held if the insurer proceeded against requests this.
(f)
If, at any time after the issuance of an order, it appears to the court that any person whose interest is or will be substantially affected by the order did not appear at the hearing and has not been served, the court may order that notice be given. An order that notice be given shall not stay the effect of any order previously issued by the court.
History of Section.
P.L. 1993, ch. 248, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.3 - Insurers’ Rehabilitation and Liquidation Act › Section 27-14.3-11. - Commencement of formal delinquency proceeding.

§ 27-14.3-11. Commencement of formal delinquency proceeding.
(a)
Any formal delinquency proceeding against a person shall be commenced by filing a petition in the name of the commissioner.
(b)
The petition shall state the grounds upon which the proceeding is based and the relief requested, and may include a prayer for restraining orders and injunctive relief as described in § 27-14.3-5.
(c)
Any petition that prays for a temporary restraining order must be verified by the commissioner or his or her designee, but need not plead or prove irreparable harm or inadequate remedy by law. The commissioner shall provide only that notice as the court may require.
(d)
If any temporary restraining order is prayed for:
(1)
The court may issue an initial order containing the relief requested;
(2)
The order shall state the time and date of its issuance;
(3)
The court shall set a time and date for the return of summons, not more than ten (10) days from the time and date of the issuance of the initial order, at which time the person proceeded against may appear before the court for a summary hearing;
(4)
The order shall not continue in effect beyond the time and date set for the return of summons, unless the court shall expressly enter one or more orders extending the restraining order; and
(5)
The verified petition and the initial order shall be filed with the clerk of the court and maintained as confidential, except for good cause shown, until personal service is made.
(e)
If no temporary restraining order is requested, the court shall cause summons to be issued. The summons shall specify a return date not more than thirty (30) days after issuance and that an answer must be filed at or before the return date.
History of Section.
P.L. 1993, ch. 248, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.3 - Insurers’ Rehabilitation and Liquidation Act › Section 27-14.3-12. - Return of summons and summary hearing.

§ 27-14.3-12. Return of summons and summary hearing.
(a)
The court shall hold a summary hearing at the time and date for the return of summons.
(b)
If a person is not served with summons and fails to appear for the summary hearing, the court shall:
(1)
Continue the summary hearing not more than ten (10) days;
(2)
Provide for alternative service of summons upon the person; and
(3)
Extend any restraining order.
(c)
Upon a showing of good faith efforts to effect personal service upon a person who has failed to appear for a continued summary hearing, the court shall order notice of the petition to be published. The order and notice shall specify a return date not less than ten (10) nor more than twenty (20) days after the publication and that the restraining order has been extended to the continued hearing date.
(d)
If a person fails to appear for a summary hearing after service of summons, the court shall enter a judgment in favor of the commissioner against that person.
(e)
A person who appears for the summary hearing shall file its answer at the hearing and the court shall:
(1)
Determine whether to extend any temporary restraining orders pending final judgment; and
(2)
Set the case for trial on a date not more than ten (10) days from the summary hearing.
(f)
The court shall grant no continuance for filing an answer.
History of Section.
P.L. 1993, ch. 248, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.3 - Insurers’ Rehabilitation and Liquidation Act › Section 27-14.3-13. - Proceedings for expedited trial — Continuances, discovery, and evidence.

§ 27-14.3-13. Proceedings for expedited trial — Continuances, discovery, and evidence.
(a)
The court shall proceed to hear the case at the time and date set forth for trial without a jury and without unnecessary delays. To the extent not inconsistent with other law, the court shall give precedence to the matter over all other matters. To the extent authorized by law, the court may assign the matter to other judges if necessary to comply with the need for expedited proceedings under this chapter.
(b)
Continuances for trial shall be granted only in extreme circumstances.
(c)
The court shall receive as self-authenticated any of the following when offered by the commissioner:
(1)
Certified copies of the financial statements made by the person; and
(2)
Certified copies of examination reports of the person made by or on behalf of the commissioner.
(d)
The facts contained in any examination report shall be presumed to be true as of the date of the hearing if the examination was made as of a date not more than two hundred seventy (270) days before the petition was filed. The presumption shall be rebuttable and shall shift the burden of production and persuasion.
(e)
Discovery shall be limited to grounds alleged in the petition, and shall be concluded on an expedited basis.
History of Section.
P.L. 1993, ch. 248, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.3 - Insurers’ Rehabilitation and Liquidation Act › Section 27-14.3-14. - Decision and appeals.

§ 27-14.3-14. Decision and appeals.
(a)
The court shall enter judgment within fifteen (15) days after the conclusion of the evidence.
(b)
The judgment shall be final when entered. Any appeal shall be prosecuted on an expedited basis and must be taken within five (5) days of entry. No request for reconsideration, review, or appeal, and no posting of a bond, shall dissolve or stay the judgment.
History of Section.
P.L. 1993, ch. 248, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.3 - Insurers’ Rehabilitation and Liquidation Act › Section 27-14.3-15. - Confidentiality of hearings.

§ 27-14.3-15. Confidentiality of hearings.
In all proceedings and judicial reviews under § 27-14.3-10, all records of the insurer, other documents, and all insurance department files and court records and papers, so far as they pertain to or are a part of the record of the proceedings, shall be and remain confidential except as is necessary to obtain compliance with the proceedings, unless and until the superior court for the county of Providence, after hearing arguments from the parties in chambers, shall order otherwise or unless the insurer requests that the matter be made public. Until that court order, all papers filed with the clerk of the superior court for the county of Providence shall be held by him or her in a confidential file.
History of Section.
P.L. 1993, ch. 248, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.3 - Insurers’ Rehabilitation and Liquidation Act › Section 27-14.3-17. - Rehabilitation order.

§ 27-14.3-17. Rehabilitation order.
(a)
An order to rehabilitate the business of a domestic insurer, or an alien insurer domiciled in this state, shall appoint the commissioner and his or her successors in office the rehabilitator, and shall direct the rehabilitator to take possession of the assets of the insurer, and to administer them under the general supervision of the court. The filing or recording of the order with the clerk of the superior court for the county of Providence or recorder of deeds of the city or town in which the principal business of the company is conducted, 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. The order to rehabilitate the insurer shall by operation of law vest title to all assets of the insurer in the rehabilitator.
(b)
Any order issued under this section shall require accountings to the court by the rehabilitator. Accountings shall be at those intervals as the court specifies in its order, but no less frequently than semiannually. Each accounting shall include a report concerning the rehabilitator’s opinion as to the likelihood that a plan under § 27-14.3-18(f) will be prepared by the rehabilitator and the timetable for doing so.
(c)
Entry of an order of rehabilitation shall not constitute an anticipatory breach of any contracts of the insurer nor shall it be grounds for retroactive revocation or retroactive cancellation of any contracts of the insurer, unless the revocation or cancellation is done by the rehabilitator pursuant to § 27-14.3-18.
History of Section.
P.L. 1993, ch. 248, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.3 - Insurers’ Rehabilitation and Liquidation Act › Section 27-14.3-19. - Actions by and against rehabilitator.

§ 27-14.3-19. Actions by and against rehabilitator.
(a)
Any court in this state before which any action or proceeding in which the insurer is a party, or is obligated to defend a party, is pending when a rehabilitative order against the insurer is entered shall stay the action or proceeding for ninety (90) days and any additional time as is necessary for the rehabilitator to obtain proper representation and prepare for further proceedings. The rehabilitator shall take any action respecting the pending litigation as he or she deems necessary in the interests of justice and for the protection of creditors, policyholders, and the public. The rehabilitator shall immediately consider all litigation pending outside of this state and shall petition the courts having jurisdiction over that litigation for injunctions and stays whenever necessary to protect the estate of the insurer.
(b)
No statute of limitations or defense of laches shall run with respect to any action by or against an insurer between the filing of a petition for appointment of a rehabilitator for that insurer and the order granting or denying that petition. Any action against the insurer that might have been commenced when the petition was filed may be commenced for at least sixty (60) days after the order of rehabilitation is entered or the petition is denied. The rehabilitator may, upon an order for rehabilitation, within one year or other longer time as applicable law may permit, institute an action or proceeding on behalf of the insurer upon any cause of action against which the period of limitation fixed by applicable law has not expired at the time of the filing of the petition upon which the order is entered.
(c)
Any guaranty association or foreign guaranty association covering life or health insurance or annuities shall have standing to appear in any court proceeding concerning the rehabilitation of a life or health insurer if the association is or may become liable to act as a result of the rehabilitation.
History of Section.
P.L. 1993, ch. 248, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.3 - Insurers’ Rehabilitation and Liquidation Act › Section 27-14.3-20. - Termination of rehabilitation.

§ 27-14.3-20. Termination of rehabilitation.
(a)
Whenever the commissioner believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders, or the public, or would be futile, the commissioner may petition the superior court for the county of Providence for an order of liquidation. A petition under this subsection shall have the same effect as a petition under § 27-14.3-21. The superior court for the county of Providence shall permit the directors of the insurer to take any actions as are reasonably necessary to defend against the petition and may order payment from the estate of the insurer of any costs and other expenses of defense as justice may require.
(b)
The protection of the interests of the insured, claimants, and the public requires the timely performance of all insurance policy obligations. If the payment of policy obligations is suspended in substantial part for a period of six (6) months at any time after the appointment of the rehabilitator and the rehabilitator has not filed an application for approval of a plan under § 27-14.3-18(f), the rehabilitator shall petition the court for an order of liquidation on the grounds of insolvency.
(c)
The rehabilitator may at any time petition the superior court for the county of Providence for an order terminating rehabilitation of an insurer. The court shall also permit the directors of the insurer to petition the court for an order terminating rehabilitation of the insurer and may order payment from the estate of the insurer of any costs and other expenses of the petition as justice may require. If the superior court for the county of Providence finds that rehabilitation has been accomplished and that grounds for rehabilitation under § 27-14.3-16 no longer exist, it shall order that the insurer be restored to possession of its property and the control of the business. The superior court for the county of Providence may also make that finding and issue that order at any time upon its own motion.
History of Section.
P.L. 1993, ch. 248, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.3 - Insurers’ Rehabilitation and Liquidation Act › Section 27-14.3-21. - Grounds for liquidation.

§ 27-14.3-21. Grounds for liquidation.
The commissioner may petition the superior court for the county of Providence for an order directing him or her to liquidate a domestic insurer or an alien insurer domiciled in this state on the basis:
(1)
Of any ground for an order of rehabilitation as specified in § 27-14.3-16, whether or not there has been a prior order directing the rehabilitation of the insurer;
(2)
That the insurer is insolvent; or
(3)
That the insurer is in a condition that would make the further transaction of business hazardous, financially or otherwise, to its policyholders, its creditors, or the public.
History of Section.
P.L. 1993, ch. 248, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.3 - Insurers’ Rehabilitation and Liquidation Act › Section 27-14.3-23. - Continuance of coverage.

§ 27-14.3-23. Continuance of coverage.
(a)
All policies, including bonds and other noncancellable business, other than life or health insurance or annuities, in effect at the time of the issuance of an order of liquidation shall continue in force only for the lesser of:
(1)
The greater of a period of thirty (30) days from the date of entry of the liquidation order or a time as coverage is provided for by a responsible guaranty association, if any is applicable;
(2)
The expiration of the policy coverage;
(3)
The date when the insured has replaced the insurance coverage with equivalent insurance in another insurer or terminated the policy;
(4)
The liquidator has effected a transfer of the policy obligation pursuant to § 27-14.3-25(a)(10); or
(5)
The date proposed by the liquidator and approved by the court to cancel coverage.
(b)
An order or liquidation under § 27-14.3-22 shall terminate coverage at the time specified in subsection (a) of this section for the purposes of any other statute.
(c)
Policies of life or health insurance or annuities shall continue in force for any period and under any terms as is provided for by any applicable guaranty association or foreign guaranty association.
(d)
Policies of life or health insurance or annuities or any period or coverage of those policies not covered by a guaranty association or foreign guaranty association shall terminate under subsections (a) and (b) of this section.
History of Section.
P.L. 1993, ch. 248, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.3 - Insurers’ Rehabilitation and Liquidation Act › Section 27-14.3-24. - Dissolution of insurer.

§ 27-14.3-24. Dissolution of insurer.
The commissioner may petition for an order dissolving the corporate existence of a domestic insurer or the United States branch of an alien insurer domiciled in this state at the time he or she applies for a liquidation order. The court shall order the dissolution of the corporation upon petition by the commissioner upon or after the granting of a liquidation order. If the dissolution has not previously been ordered, it shall be effected by operation of law upon the discharge of the liquidator if the insurer is insolvent, but may be ordered by the court upon the discharge of the liquidator if the insurer is under a liquidation order for some other reason.
History of Section.
P.L. 1993, ch. 248, § 1.
2023 Rhode Island General Laws › Title 27 - Insurance › Chapter 27-14.3 - Insurers’ Rehabilitation and Liquidation Act › Section 27-14.3-26. - Notice to creditors and others.

§ 27-14.3-26. Notice to creditors and others.
(a)
Unless the court otherwise directs, the liquidator shall give or cause to be given notice of the liquidation order as soon as possible:
(1)
By first class mail and either by facsimile or telegraph to the insurance commissioner of each jurisdiction in which the insurer is doing business;
(2)
By first class mail to any guaranty association or foreign guaranty association which is or may become obligated as a result of the liquidation;
(3)
By first class mail to all insurance agents or insurance producers of the insurer;
(4)
By first class mail to all persons known or reasonably expected to have claims against the insurer including all policyholders, at their last known address as indicated by the records of the insurer;
(5)
By first class mail to federal, state, and local governmental agencies and instrumentalities as their interests may arise; and
(6)
By publication in a newspaper of general circulation in the state in which the insurer has its principal place of business and in those other locations that the liquidator deems appropriate.
(b)
Except as established by the liquidator with the approval of the court, notice to potential claimants under subsection (a) of this section shall require claimants to file with the liquidator their claims together with proper proofs of their claims under § 27-14.3-40, on or before a date the liquidator shall specify in the notice. The liquidator need not require persons claiming cash surrender values or other investment values in life insurance and annuities to file a claim. All claimants shall have a duty to keep the liquidator informed of any changes of address.
(c)(1)
Notice under subsection (a) of this section to agents or insurance producers of the insurer and to potential claimants who are policyholders shall include, where applicable, notice that coverage by state guaranty associations may be available for all or part of policy benefits in accordance with applicable state guaranty laws.
(2)
The liquidator shall promptly provide to the guaranty associations any information concerning the identities and addresses of the policyholders and their policy coverages as may be within the liquidator’s possession or control, and cooperate with guaranty associations to assist them in providing to the policyholders timely notice of the guaranty associations’ coverage of policy benefits, including, as applicable, coverage of claims and continuation termination of coverage.
(d)
If notice is given in accordance with this section, the distribution of assets of the insurer under this chapter shall be conclusive with respect to all claimants, whether or not they received notice.
History of Section.
P.L. 1993, ch. 248, § 1.