§ 26-23-310 — Use of reinsurance reserve on liquidation, dissolution or insolvency

(a) If a domestic title insurer becomes insolvent, is in
the process of liquidation of dissolution or is in the
commissioner's possession:
(i) The amount of the assets of the title insurance
company equal to the reinsurance reserve then remaining may be
used by or with the commissioner's written approval to pay for
reinsurance of the title insurer's liability upon all
outstanding title insurance policies or reinsurance agreements
to the extent to which claims for losses by the holders thereof
are not then pending. The balance of assets, if any, equal to
the reinsurance reserve may then be transferred to the title
insurer's general assets;
(ii) The assets net of the reinsurance reserve shall
be available to pay claims for losses sustained by holders of
title insurance policies then pending or arising up to the time
reinsurance is effected. If claims for losses exceed the title
insurer's other assets those claims, when established, shall be
paid pro rata out of the surplus assets attributable to the
reinsurance reserve, to the extent of the surplus, if any.
(b) If reinsurance is not obtained, assets equal to the
reinsurance reserve and assets constituting minimum capital, or
so much as remains thereof after outstanding claims have been
paid, constitute a trust fund to be held and invested by the
commissioner for twenty (20) years, out of which claims of
policyholders shall be paid as they arise. The balance, if any,
of the trust fund, at the expiration of twenty (20) years, shall
revert to the general assets of the title insurer.