§ 27-14.4-19. Immediate access to assets.
(a) Within one hundred twenty (120) days of a final determination of insolvency of a company by a court of competent jurisdiction of this state, the receiver shall make an application to the court for the approval of a proposal to disburse assets out of that company’s marshaled assets as those assets become available, to the Rhode Island insurers’ insolvency fund and to any similar organization in another state. The Rhode Island insurers’ insolvency fund and similar organizations in other states shall be referred to throughout this section collectively as “the funds”.
(b) The proposal shall at least include provision for:
(1) Reserving amounts for the payment of the expenses of administration and claims falling within the priorities established in § 27-14.4-20(1), (2), and (3).
(2) The disbursement of the assets marshaled to date and subsequent disbursements of assets as they become available.
(3) The equitable allocation of disbursements to each of the funds entitled to the disbursements; and
(4) The securing by the receiver from each of the funds entitled to disbursements pursuant to this section of an agreement to return to the receiver any assets previously disbursed as may be required to pay claims of secured creditors and claims falling within the priorities established in § 27-14.4-20(1), (2), (3), and (4) in accordance with those priorities. No bond shall be required of any fund.
(c) The receiver’s proposal shall provide for disbursements to the funds in amounts at least equal to the payments made or to be made by the funds for which the funds could assert claims against the receiver, and shall provide that if the assets available for disbursement do not equal or exceed the amount of those payments made or to be made by the funds then disbursements shall be in the amount of available assets.
(d) Notice of the application shall be given to the funds in each of the states and to the commissioners of insurance of each of the states. Any notice shall be deemed to have been given when deposited in the United States certified mails, first class postage prepaid, at least thirty (30) days prior to the submission of the application to the court. Action on the application may be taken by the court provided this required notice has been given, and provided that the receiver’s proposal complies with subdivisions (b)(1) and (b)(4) of this section.
History of Section.
P.L. 1994, ch. 141, § 2; G.L. 1956, § 27-14.4-21.