§ 27-20.3-11 — § 27-20.3-11. Rehabilitation, liquidation, or conservation.

Rhode Island § 27-20.3-11

• Jurisdiction: Rhode Island
• Title 27: Insurance
• Ch. 27-20.3: Nonprofit Legal Service Corporations

Text

§ 27-20.3-11. Rehabilitation, liquidation, or conservation.

(a) Any rehabilitation, liquidation, administrative supervision, or conservation of a nonprofit legal 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 legal service corporation upon any one or more of the following grounds:

(1) That the nonprofit legal service corporation is insolvent; for the purposes of this section, the term "insolvent� means the inability of the nonprofit legal service corporation to meet its debts and financial obligations as they become due;

(2) That the nonprofit legal 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 that, if uncorrected, could reasonably lead to insolvency as defined in subsection (a)(1) of this section; or

(3) That the nonprofit legal 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 healthcare provider shall not be asserted against any subscriber or member of the nonprofit legal service corporation in the event of the rehabilitation, liquidation, conservation, or administrative supervision of the nonprofit legal service corporation.

Legislative History

P.L. 1993, ch. 180, § 23.