§ 27-14.4-19 - Immediate access to assets.
SECTION 27-14.4-19
§ 27-14.4-19 Immediate access to assets.– (a) Within one hundred twenty (120) days of a final determination of insolvencyof a company by a court of competent jurisdiction of this state, the receivershall make an application to the court for the approval of a proposal todisburse assets out of that company's marshaled assets as those assets becomeavailable, to the Rhode Island insurers' insolvency fund and to any similarorganization in another state. The Rhode Island insurers' insolvency fund andsimilar organizations in other states shall be referred to throughout thissection collectively as "the funds".
(b) The proposal shall at least include provision for:
(1) Reserving amounts for the payment of the expenses ofadministration 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 andsubsequent disbursements of assets as they become available.
(3) The equitable allocation of disbursements to each of thefunds entitled to the disbursements; and
(4) The securing by the receiver from each of the fundsentitled to disbursements pursuant to this section of an agreement to return tothe receiver any assets previously disbursed as may be required to pay claimsof secured creditors and claims falling within the priorities established in§ 27-14.4-20(1), (2), (3), and (4) in accordance with those priorities. Nobond shall be required of any fund.
(c) The receiver's proposal shall provide for disbursementsto the funds in amounts at least equal to the payments made or to be made bythe funds for which the funds could assert claims against the receiver, andshall provide that if the assets available for disbursement do not equal orexceed the amount of those payments made or to be made by the funds thendisbursements shall be in the amount of available assets.
(d) Notice of the application shall be given to the funds ineach 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 UnitedStates certified mails, first class postage prepaid, at least thirty (30) daysprior to the submission of the application to the court. Action on theapplication may be taken by the court provided this required notice has beengiven, and provided that the receiver's proposal complies with subdivisions(b)(1) and (b)(4) of this section.