§ 27-14.3-25 Powers of liquidator. –(a) The liquidator shall have the power:
(1) To appoint a special deputy or deputies to act for him orher under this chapter, and to determine his or her reasonable compensation.The special deputy shall have all of the powers of the liquidator granted bythis section. The special deputy shall serve at the pleasure of the liquidator;
(2) To employ employees and agents, legal counsel, actuaries,accountants, appraisers, consultants, and any other personnel as he or she maydeem necessary to assist in the liquidation;
(3) To appoint, with the approval of the court, an advisorycommittee of policyholders, claimants, or other creditors including guarantyassociations should a committee be deemed necessary; provided, that if anonprofit hospital service corporation, nonprofit medical service corporation,or nonprofit dental service corporation is subject to an order of liquidation,the commissioner shall appoint an advisory committee of creditors to includeRhode Island nonprofit hospitals. The committee shall serve at the pleasure ofthe commissioner and shall serve without compensation other than reimbursementfor reasonable travel and per diem living expenses. No other committee of anynature shall be appointed by the commissioner or the court in liquidationproceedings conducted under this chapter;
(4) To fix the reasonable compensation of employees andagents, legal counsel, actuaries, accountants, appraisers, and consultants withthe approval of the court and may reimburse from the assets of the insurer thedivision of insurance and its agents and consultants at the statutoryexamination rate and/or reasonable agents' or consultants' rates for reasonablecosts incurred in the examination and investigation in anticipation ofliquidation, and in the liquidation of the insurer, those fees are to be Class1 expenses of administration pursuant to § 27-14.3-46;
(5) To pay reasonable compensation to persons appointed andto defray from the funds or assets of the insurer all of the expenses of takingpossession of, conserving, conducting, liquidating, disposing of, or dealingwith the business and property of the insurer. In the event that the propertyof the insurer does not contain sufficient cash or liquid assets to defray theincurred costs, the commissioner may advance the incurred costs out of anyappropriation for the maintenance of the insurance department. Any advancedamounts for the expenses of administration shall be repaid to the commissionerfor the use of the insurance department out of the first available moneys ofthe insurer;
(6) To hold hearings, to subpoena witnesses to compel theirattendance, to administer oaths, to examine any person under oath, and tocompel any person to subscribe to his or her testimony after it has beencorrectly reduced to writing, and in connection with this to require theproduction of any books, papers, records or other documents which he or shedeems relevant to the inquiry;
(7) To audit the books and records of all agents or insuranceproducers of the insurer insofar as those records relate to the businessactivities of the insurer;
(8) To collect all debts and moneys due and claims belongingto the insurer, wherever located, and for this purpose:
(i) To institute timely action in other jurisdictions inorder to forestall garnishment and attachment proceedings against the debts;
(ii) To do any other acts as are necessary or expedient tocollect, conserve, or protect its assets or property, including the power tosell, compound, compromise, or assign debts for the purposes of collection uponany terms and conditions as he or she deems best; and
(iii) To pursue any creditor's remedies available to enforcehis or her claims;
(9) To conduct public and private sales of the property ofthe insurer;
(10) To use assets of the estate of an insurer under aliquidation order to transfer policy obligations to a solvent assuming insurer,if the transfer can be arranged without prejudice to applicable prioritiesunder § 27-14.3-46;
(11) To acquire, hypothecate, encumber, lease, improve, sell,transfer, abandon, or dispose of or deal with any property of the insurer atits market value or upon terms and conditions as are fair and reasonable. He orshe shall also have the power to execute, acknowledge, and deliver any and alldeeds, assignments, releases, and other instruments necessary or proper toeffectuate any sale of property or other transaction in connection with theliquidation;
(12) To borrow money on the security of the insurer's assetsor without security and to execute and deliver all documents necessary to thattransaction for the purpose of facilitating the liquidation. Any funds borrowedmay be repaid as an administrative expense and have priority over any otherclaims in § 27-14.3-46(a)(1), Class 1, under the priority of distribution;
(13) To enter into any contracts as are necessary to carryout the order to liquidate, and to affirm or disavow any contracts to which theinsurer is a party;
(14) To continue to prosecute and to institute in the name ofthe insurer or in his or her own name any and all suits and other legalproceedings, in this state or another place, and to abandon the prosecution ofclaims he or she deems unprofitable to pursue further. If the insurer isdissolved under § 27-14.3-24, he or she shall have the power to apply toany court in this state or another place for leave to substitute himself forthe insurer as plaintiff;
(15) To prosecute any action which may exist in behalf of thecreditors, members, policyholders, or shareholders of the insurer against anyofficer or director of the insurer, or any other person;
(16) To remove any or all records and property of the insurerto the offices of the commissioner or to any other place as may be convenientfor the purposes of efficient and orderly execution of the liquidation.Guaranty associations and foreign guaranty associations shall have reasonableaccess to the records of the insurer as is necessary for them to carry outtheir statutory obligations;
(17) To deposit in one or more banks in this state those sumsas are required for meeting current administration expenses and dividenddistributions;
(18) To invest all sums not currently needed, unless thecourt orders otherwise;
(19) To file any necessary documents for record in the officeof any recorder of deeds or record office in this state or another place whereproperty of the insurer is located;
(20) To assert all defenses available to the insurer asagainst third persons, including statutes of limitations, statutes of frauds,and the defense of usury. A waiver of any defense by the insurer after apetition in liquidation has been filed shall not bind the liquidator. Whenevera guaranty association or foreign guaranty association has an obligation todefend any suit, the liquidator shall give precedence to that obligation andmay defend only in the absence of a defense by the guaranty associations;
(21) To exercise and enforce all of the rights, remedies, andpowers of any creditor, shareholder, policyholder, or member including anypower to avoid any transfer or lien that may be given by the general laws andthat is not included with §§ 27-14.3-30 – 27-14.3-32;
(22) To intervene in any proceeding wherever instituted thatmight lead to the appointment of a receiver or trustee, and to act as thereceiver or trustee whenever the appointment is offered;
(23) To enter into agreements with any receiver orcommissioner of any other state relating to the rehabilitation, liquidation,conservation, or dissolution of an insurer doing business in both states; and
(24) To exercise all of the powers now held or after thisconferred upon receivers by the laws of this state not inconsistent with theprovisions of this chapter.
(b) The enumeration in this section of the powers andauthority of the liquidator shall not be construed as a limitation upon him orher, nor shall it exclude in any manner his or her right to do any other actsnot specifically enumerated or provided for in this section as may be necessaryor appropriate for the accomplishment of or in aid of the purpose ofliquidation.
(c) Notwithstanding the powers of the liquidator as stated insubsections (a) and (b) of this section, the liquidator shall have noobligation to defend claims or to continue to defend claims subsequent to theentry of a liquidation order.
§ 27-14.3-25 Powers of liquidator. –(a) The liquidator shall have the power:
(1) To appoint a special deputy or deputies to act for him orher under this chapter, and to determine his or her reasonable compensation.The special deputy shall have all of the powers of the liquidator granted bythis section. The special deputy shall serve at the pleasure of the liquidator;
(2) To employ employees and agents, legal counsel, actuaries,accountants, appraisers, consultants, and any other personnel as he or she maydeem necessary to assist in the liquidation;
(3) To appoint, with the approval of the court, an advisorycommittee of policyholders, claimants, or other creditors including guarantyassociations should a committee be deemed necessary; provided, that if anonprofit hospital service corporation, nonprofit medical service corporation,or nonprofit dental service corporation is subject to an order of liquidation,the commissioner shall appoint an advisory committee of creditors to includeRhode Island nonprofit hospitals. The committee shall serve at the pleasure ofthe commissioner and shall serve without compensation other than reimbursementfor reasonable travel and per diem living expenses. No other committee of anynature shall be appointed by the commissioner or the court in liquidationproceedings conducted under this chapter;
(4) To fix the reasonable compensation of employees andagents, legal counsel, actuaries, accountants, appraisers, and consultants withthe approval of the court and may reimburse from the assets of the insurer thedivision of insurance and its agents and consultants at the statutoryexamination rate and/or reasonable agents' or consultants' rates for reasonablecosts incurred in the examination and investigation in anticipation ofliquidation, and in the liquidation of the insurer, those fees are to be Class1 expenses of administration pursuant to § 27-14.3-46;
(5) To pay reasonable compensation to persons appointed andto defray from the funds or assets of the insurer all of the expenses of takingpossession of, conserving, conducting, liquidating, disposing of, or dealingwith the business and property of the insurer. In the event that the propertyof the insurer does not contain sufficient cash or liquid assets to defray theincurred costs, the commissioner may advance the incurred costs out of anyappropriation for the maintenance of the insurance department. Any advancedamounts for the expenses of administration shall be repaid to the commissionerfor the use of the insurance department out of the first available moneys ofthe insurer;
(6) To hold hearings, to subpoena witnesses to compel theirattendance, to administer oaths, to examine any person under oath, and tocompel any person to subscribe to his or her testimony after it has beencorrectly reduced to writing, and in connection with this to require theproduction of any books, papers, records or other documents which he or shedeems relevant to the inquiry;
(7) To audit the books and records of all agents or insuranceproducers of the insurer insofar as those records relate to the businessactivities of the insurer;
(8) To collect all debts and moneys due and claims belongingto the insurer, wherever located, and for this purpose:
(i) To institute timely action in other jurisdictions inorder to forestall garnishment and attachment proceedings against the debts;
(ii) To do any other acts as are necessary or expedient tocollect, conserve, or protect its assets or property, including the power tosell, compound, compromise, or assign debts for the purposes of collection uponany terms and conditions as he or she deems best; and
(iii) To pursue any creditor's remedies available to enforcehis or her claims;
(9) To conduct public and private sales of the property ofthe insurer;
(10) To use assets of the estate of an insurer under aliquidation order to transfer policy obligations to a solvent assuming insurer,if the transfer can be arranged without prejudice to applicable prioritiesunder § 27-14.3-46;
(11) To acquire, hypothecate, encumber, lease, improve, sell,transfer, abandon, or dispose of or deal with any property of the insurer atits market value or upon terms and conditions as are fair and reasonable. He orshe shall also have the power to execute, acknowledge, and deliver any and alldeeds, assignments, releases, and other instruments necessary or proper toeffectuate any sale of property or other transaction in connection with theliquidation;
(12) To borrow money on the security of the insurer's assetsor without security and to execute and deliver all documents necessary to thattransaction for the purpose of facilitating the liquidation. Any funds borrowedmay be repaid as an administrative expense and have priority over any otherclaims in § 27-14.3-46(a)(1), Class 1, under the priority of distribution;
(13) To enter into any contracts as are necessary to carryout the order to liquidate, and to affirm or disavow any contracts to which theinsurer is a party;
(14) To continue to prosecute and to institute in the name ofthe insurer or in his or her own name any and all suits and other legalproceedings, in this state or another place, and to abandon the prosecution ofclaims he or she deems unprofitable to pursue further. If the insurer isdissolved under § 27-14.3-24, he or she shall have the power to apply toany court in this state or another place for leave to substitute himself forthe insurer as plaintiff;
(15) To prosecute any action which may exist in behalf of thecreditors, members, policyholders, or shareholders of the insurer against anyofficer or director of the insurer, or any other person;
(16) To remove any or all records and property of the insurerto the offices of the commissioner or to any other place as may be convenientfor the purposes of efficient and orderly execution of the liquidation.Guaranty associations and foreign guaranty associations shall have reasonableaccess to the records of the insurer as is necessary for them to carry outtheir statutory obligations;
(17) To deposit in one or more banks in this state those sumsas are required for meeting current administration expenses and dividenddistributions;
(18) To invest all sums not currently needed, unless thecourt orders otherwise;
(19) To file any necessary documents for record in the officeof any recorder of deeds or record office in this state or another place whereproperty of the insurer is located;
(20) To assert all defenses available to the insurer asagainst third persons, including statutes of limitations, statutes of frauds,and the defense of usury. A waiver of any defense by the insurer after apetition in liquidation has been filed shall not bind the liquidator. Whenevera guaranty association or foreign guaranty association has an obligation todefend any suit, the liquidator shall give precedence to that obligation andmay defend only in the absence of a defense by the guaranty associations;
(21) To exercise and enforce all of the rights, remedies, andpowers of any creditor, shareholder, policyholder, or member including anypower to avoid any transfer or lien that may be given by the general laws andthat is not included with §§ 27-14.3-30 – 27-14.3-32;
(22) To intervene in any proceeding wherever instituted thatmight lead to the appointment of a receiver or trustee, and to act as thereceiver or trustee whenever the appointment is offered;
(23) To enter into agreements with any receiver orcommissioner of any other state relating to the rehabilitation, liquidation,conservation, or dissolution of an insurer doing business in both states; and
(24) To exercise all of the powers now held or after thisconferred upon receivers by the laws of this state not inconsistent with theprovisions of this chapter.
(b) The enumeration in this section of the powers andauthority of the liquidator shall not be construed as a limitation upon him orher, nor shall it exclude in any manner his or her right to do any other actsnot specifically enumerated or provided for in this section as may be necessaryor appropriate for the accomplishment of or in aid of the purpose ofliquidation.
(c) Notwithstanding the powers of the liquidator as stated insubsections (a) and (b) of this section, the liquidator shall have noobligation to defend claims or to continue to defend claims subsequent to theentry of a liquidation order.
§ 27-14.3-25 Powers of liquidator. –(a) The liquidator shall have the power:
(1) To appoint a special deputy or deputies to act for him orher under this chapter, and to determine his or her reasonable compensation.The special deputy shall have all of the powers of the liquidator granted bythis section. The special deputy shall serve at the pleasure of the liquidator;
(2) To employ employees and agents, legal counsel, actuaries,accountants, appraisers, consultants, and any other personnel as he or she maydeem necessary to assist in the liquidation;
(3) To appoint, with the approval of the court, an advisorycommittee of policyholders, claimants, or other creditors including guarantyassociations should a committee be deemed necessary; provided, that if anonprofit hospital service corporation, nonprofit medical service corporation,or nonprofit dental service corporation is subject to an order of liquidation,the commissioner shall appoint an advisory committee of creditors to includeRhode Island nonprofit hospitals. The committee shall serve at the pleasure ofthe commissioner and shall serve without compensation other than reimbursementfor reasonable travel and per diem living expenses. No other committee of anynature shall be appointed by the commissioner or the court in liquidationproceedings conducted under this chapter;
(4) To fix the reasonable compensation of employees andagents, legal counsel, actuaries, accountants, appraisers, and consultants withthe approval of the court and may reimburse from the assets of the insurer thedivision of insurance and its agents and consultants at the statutoryexamination rate and/or reasonable agents' or consultants' rates for reasonablecosts incurred in the examination and investigation in anticipation ofliquidation, and in the liquidation of the insurer, those fees are to be Class1 expenses of administration pursuant to § 27-14.3-46;
(5) To pay reasonable compensation to persons appointed andto defray from the funds or assets of the insurer all of the expenses of takingpossession of, conserving, conducting, liquidating, disposing of, or dealingwith the business and property of the insurer. In the event that the propertyof the insurer does not contain sufficient cash or liquid assets to defray theincurred costs, the commissioner may advance the incurred costs out of anyappropriation for the maintenance of the insurance department. Any advancedamounts for the expenses of administration shall be repaid to the commissionerfor the use of the insurance department out of the first available moneys ofthe insurer;
(6) To hold hearings, to subpoena witnesses to compel theirattendance, to administer oaths, to examine any person under oath, and tocompel any person to subscribe to his or her testimony after it has beencorrectly reduced to writing, and in connection with this to require theproduction of any books, papers, records or other documents which he or shedeems relevant to the inquiry;
(7) To audit the books and records of all agents or insuranceproducers of the insurer insofar as those records relate to the businessactivities of the insurer;
(8) To collect all debts and moneys due and claims belongingto the insurer, wherever located, and for this purpose:
(i) To institute timely action in other jurisdictions inorder to forestall garnishment and attachment proceedings against the debts;
(ii) To do any other acts as are necessary or expedient tocollect, conserve, or protect its assets or property, including the power tosell, compound, compromise, or assign debts for the purposes of collection uponany terms and conditions as he or she deems best; and
(iii) To pursue any creditor's remedies available to enforcehis or her claims;
(9) To conduct public and private sales of the property ofthe insurer;
(10) To use assets of the estate of an insurer under aliquidation order to transfer policy obligations to a solvent assuming insurer,if the transfer can be arranged without prejudice to applicable prioritiesunder § 27-14.3-46;
(11) To acquire, hypothecate, encumber, lease, improve, sell,transfer, abandon, or dispose of or deal with any property of the insurer atits market value or upon terms and conditions as are fair and reasonable. He orshe shall also have the power to execute, acknowledge, and deliver any and alldeeds, assignments, releases, and other instruments necessary or proper toeffectuate any sale of property or other transaction in connection with theliquidation;
(12) To borrow money on the security of the insurer's assetsor without security and to execute and deliver all documents necessary to thattransaction for the purpose of facilitating the liquidation. Any funds borrowedmay be repaid as an administrative expense and have priority over any otherclaims in § 27-14.3-46(a)(1), Class 1, under the priority of distribution;
(13) To enter into any contracts as are necessary to carryout the order to liquidate, and to affirm or disavow any contracts to which theinsurer is a party;
(14) To continue to prosecute and to institute in the name ofthe insurer or in his or her own name any and all suits and other legalproceedings, in this state or another place, and to abandon the prosecution ofclaims he or she deems unprofitable to pursue further. If the insurer isdissolved under § 27-14.3-24, he or she shall have the power to apply toany court in this state or another place for leave to substitute himself forthe insurer as plaintiff;
(15) To prosecute any action which may exist in behalf of thecreditors, members, policyholders, or shareholders of the insurer against anyofficer or director of the insurer, or any other person;
(16) To remove any or all records and property of the insurerto the offices of the commissioner or to any other place as may be convenientfor the purposes of efficient and orderly execution of the liquidation.Guaranty associations and foreign guaranty associations shall have reasonableaccess to the records of the insurer as is necessary for them to carry outtheir statutory obligations;
(17) To deposit in one or more banks in this state those sumsas are required for meeting current administration expenses and dividenddistributions;
(18) To invest all sums not currently needed, unless thecourt orders otherwise;
(19) To file any necessary documents for record in the officeof any recorder of deeds or record office in this state or another place whereproperty of the insurer is located;
(20) To assert all defenses available to the insurer asagainst third persons, including statutes of limitations, statutes of frauds,and the defense of usury. A waiver of any defense by the insurer after apetition in liquidation has been filed shall not bind the liquidator. Whenevera guaranty association or foreign guaranty association has an obligation todefend any suit, the liquidator shall give precedence to that obligation andmay defend only in the absence of a defense by the guaranty associations;
(21) To exercise and enforce all of the rights, remedies, andpowers of any creditor, shareholder, policyholder, or member including anypower to avoid any transfer or lien that may be given by the general laws andthat is not included with §§ 27-14.3-30 – 27-14.3-32;
(22) To intervene in any proceeding wherever instituted thatmight lead to the appointment of a receiver or trustee, and to act as thereceiver or trustee whenever the appointment is offered;
(23) To enter into agreements with any receiver orcommissioner of any other state relating to the rehabilitation, liquidation,conservation, or dissolution of an insurer doing business in both states; and
(24) To exercise all of the powers now held or after thisconferred upon receivers by the laws of this state not inconsistent with theprovisions of this chapter.
(b) The enumeration in this section of the powers andauthority of the liquidator shall not be construed as a limitation upon him orher, nor shall it exclude in any manner his or her right to do any other actsnot specifically enumerated or provided for in this section as may be necessaryor appropriate for the accomplishment of or in aid of the purpose ofliquidation.
(c) Notwithstanding the powers of the liquidator as stated insubsections (a) and (b) of this section, the liquidator shall have noobligation to defend claims or to continue to defend claims subsequent to theentry of a liquidation order.
