Terms Used In Rhode Island General Laws > Chapter 27-14.5 - Voluntary Restructuring of Solvent Insurers

• Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
• Applicant: means a commercial run-off insurer applying under Rhode Island General Laws 27-14.5-1
• Assessment deficit: means the amount that the assessment for the previous year under Rhode Island General Laws 27-14.5-1
• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• Assumption policyholder: means a policyholder whose policy is reinsured under an assumption reinsurance agreement between the applicant and a reinsurer. See Rhode Island General Laws 27-14.5-1
• Assumption reinsurance agreement: has the meaning given in Rhode Island General Laws 27-14.5-1
• Class of creditors: means :

  (i)  All voting policyholders, including those without known claims;

  (ii)  Voting creditors, other than policyholders; or

  (iii)  Any separate class of creditors as the court may in its discretion determine should approve the commutation plan. See Rhode Island General Laws 27-14.5-1

• Commercial run-off insurer: means :

  (i)  A run-off insurer domiciled in Rhode Island, or the protected cell of the insurer, whose business, excluding all business subject to an assumption reinsurance agreement, includes only the reinsuring of any line(s) of business other than life and/or the insuring of any line(s) of business other than life, workers' compensation, and personal lines insurance; or

  (ii)  A Rhode Island domestic insurance company, or the protected cell of that insurer, meeting the requirements of subsection (i) whose liabilities consist of commercial liabilities transferred to said company with the approval of the commissioner and pursuant to the regulations issued by the department under this chapter. See Rhode Island General Laws 27-14.5-1

• Commissioner: means the director of the department. See Rhode Island General Laws 27-14.5-1
• Commutation plan: means a plan for extinguishing the outstanding liabilities of a commercial run-off insurer. See Rhode Island General Laws 27-14.5-1
• Contract: A legal written agreement that becomes binding when signed.
• Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
• Creditor: means :

  (i)  Any person who has a claim against the applicant; or

  (ii)  A policyholder other than an assumption policyholder. See Rhode Island General Laws 27-14.5-1

• Department: means the department of business regulation. See Rhode Island General Laws 27-14.5-1
• Fraud: Intentional deception resulting in injury to another.
• Guarantee association: means a guarantee association or foreign guarantee association, as those terms are defined in Rhode Island General Laws 27-14.5-1
• Implementation order: means an order under Rhode Island General Laws 27-14.5-1
• Insurer: has the meaning given in Rhode Island General Laws 27-14.5-1
• Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
• Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
• Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
• Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
• Person: means an individual, corporation, partnership, association, joint stock company, trust, unincorporated organization, or any similar entity or any combination of the foregoing acting in concert. See Rhode Island General Laws 27-14.5-1
• Personal lines insurance: means insurance issued for personal, family, or household purposes. See Rhode Island General Laws 27-14.5-1
• Policy: means a contract of insurance or a contract of reinsurance. See Rhode Island General Laws 27-14.5-1
• Policyholder: means an insured or a reinsured of the insurer. See Rhode Island General Laws 27-14.5-1
• Proportionate share: means , for a particular run-off insurer as of December 31 of the previous year, the ratio of:

  (i)  The gross assets of that run-off insurer; to

  (ii)  The gross assets of all run-off insurers, other than those that were not domiciled in Rhode Island on March 15 of that calendar year. See Rhode Island General Laws 27-14.5-1

• Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. ^{Source: FDIC}
• Redomestication expenditure: means , for any calendar year:

  (i)  The amount that the department's expenditures attributable to the regulation of run-off insurers increases as a result of any run-off insurer redomiciling to Rhode Island on or after March 15 of that year; less

  (ii)  Filing fees, examination costs, and any other fees in relation to insurance regulation in this state paid to this state by run-off insurers that redomiciled to Rhode Island on or after March 15 of that year, but excluding any premium taxes. See Rhode Island General Laws 27-14.5-1

• Regulatory expenditure: means , for any calendar year:

  (i)  The amount of the department's expenditures attributable to the regulation of run-off insurers domiciled in Rhode Island on March 15 of that year; less

  (ii)  Filing fees, examination costs, and any other fees in relation to insurance regulation in this state paid to this state by run-off insurers domiciled in Rhode Island on March 15 of that year, but excluding any premium taxes. See Rhode Island General Laws 27-14.5-1

• Run-off insurer: means an insurer that:

  (i)  Is domiciled in Rhode Island;

  (ii)  Has liabilities under policies for property and casualty lines of business;

  (iii)  Has ceased underwriting new business; and

  (iv)  Is only renewing ongoing business to the extent required by law or by contract. See Rhode Island General Laws 27-14.5-1

• United States: include the several states and the territories of the United States. See Rhode Island General Laws 43-3-8
• Voluntary restructuring: means the act of reorganizing the legal ownership, operational, governance, or other structures of a solvent insurer, for the purpose of enhancing organization and maximizing efficiencies, and shall include the transfer of assets and liabilities to or from an insurer, or the protected cell of an insurer pursuant to an insurance business transfer plan. See Rhode Island General Laws 27-14.5-1