(a)  Chapter 14.3 of this title shall apply to all title insurers subject to the Title Insurance Act, except as otherwise provided in this section. In applying the provisions of chapter 14.3 of this title, the court shall consider the unique aspects of title insurance and shall have broad authority to fashion relief that provides for the maximum protection of the title insurance policyholders.

Terms Used In Rhode Island General Laws 27-2.6-10

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • insurer: means a company organized under laws of this state for the purpose of transacting the business of title insurance and any foreign or non-United States title insurer licensed in this state to transact the business of title insurance. See Rhode Island General Laws 27-2.6-3
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • policy: means a contract insuring or indemnifying owners of, or other persons lawfully interested in, real or personal property or any interest in real property, against loss or damage arising from any or all of the following conditions existing and not excepted or excluded:

    (i)  Defects in or liens or encumbrances on the insured title;

    (ii)  Unmarketability of the insured title;

    (iii)  Invalidity, lack of priority or unenforceability of liens or encumbrances on the stated property;

    (iv)  Lack of legal right of access to the land; or

    (v)  Unenforceability of rights in title to the land. See Rhode Island General Laws 27-2.6-3

(b)  Security and escrow funds held by or on behalf of the title insurer shall not become general assets and shall be administered as secured creditor claims defined in chapter 14.3 of this title.

(c)  Title insurance policies that are in force at the time an order of liquidation is entered shall not be canceled except upon a showing to the court of good cause by the liquidator. The determination of good cause shall be within the discretion of the court. In making this determination, the court shall consider the unique aspects of title insurance and all other relevant circumstances.

(d)  The court may set appropriate dates that potential claimants must file their claims with the liquidator. The court may set different dates for claims based upon the title insurance policy than for all other claims. In setting dates, the court shall consider the unique aspects of title insurance and all other relevant circumstances.

(e)  As of the date of the order of insolvency or liquidation, all premiums paid, due or to become due under policies of the title insurers, shall be fully earned. It shall be the obligation of agents, insureds or representatives of the title insurer to pay fully earned premium to the liquidator or rehabilitator.

History of Section.
P.L. 2010, ch. 58, § 1; P.L. 2010, ch. 66, § 1.