§ 27-14.3-10 - Court's seizure order.
SECTION 27-14.3-10
§ 27-14.3-10 Court's seizure order. –(a) The commissioner may file in the superior court for the county ofProvidence a petition alleging, with respect to a domestic insurer:
(1) That there exists any grounds that would justify a courtorder for a formal delinquency proceeding against an insurer under this chapter;
(2) That the interests of policyholders, creditors, or thepublic will be endangered by delay; and
(3) The contents of an order deemed necessary by thecommissioner.
(b) Upon a filing under subsection (a) of this section, thecourt may issue ex parte and without a hearing the requested order which shalldirect the commissioner to take possession and control of all or a part of theproperty, books, accounts, documents, and other records of an insurer, and ofthe premises occupied by it for transaction of its business, and until furtherorder of the court enjoin the insurer and its officers, managers, agents andemployees from disposition of its property and from the transaction of itsbusiness except with the written consent of the commissioner.
(c) The court shall specify in the order what its durationshall be, which shall be that time as the court deems necessary for thecommissioner to ascertain the condition of the insurer. On the motion of eitherparty or on its own motion, the court may hold hearings as it deems desirableafter providing notice as it deems appropriate, and may extend, shorten, ormodify the terms of the seizure order. The court shall vacate the seizure orderif the commissioner fails to commence a formal proceeding under this chapterafter having had a reasonable opportunity to do so. An order of the courtpursuant to a formal proceeding under this chapter shall by itself vacate theseizure order.
(d) Entry of a seizure order under this section shall notconstitute an anticipatory breach of any contract of the insurer.
(e) An insurer subject to an ex parte order under thissection may petition the court at any time after the issuance of the order fora hearing and review of the order. The court shall hold a hearing and reviewnot more than fifteen (15) days after the request. A hearing under thissubsection may be held privately in chambers and it shall be held if theinsurer proceeded against requests this.
(f) If, at any time after the issuance of an order, itappears to the court that any person whose interest is or will be substantiallyaffected 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 shallnot stay the effect of any order previously issued by the court.