§ 10-3-514 — Actions by and against rehabilitator

(1) Any court in this state
before which any action or proceeding in which the insurer is a party, or is obligated
to defend a party, is pending when a rehabilitation order against the insurer is
entered shall stay the action or proceeding for a minimum of ninety days and for
such additional time as is necessary for the rehabilitator to obtain proper
representation and prepare for further proceedings. The rehabilitator shall take
such action respecting the pending litigation as the rehabilitator deems necessary
in the interests of justice and for the protection of creditors, policyholders, and the
public. The rehabilitator shall immediately consider all litigation pending outside
this state and shall petition the courts having jurisdiction over that litigation for
stays whenever necessary to protect the estate of the insurer.

(2) No statute of limitations or defense of laches shall run with respect to
any action by or against an insurer between the filing of a petition for appointment
of a rehabilitator for that insurer and the order granting or denying that petition.
Any action against the insurer that might have been commenced when the petition
was filed may be commenced within a period of not less than sixty days after the
order of rehabilitation is entered or the petition is denied. The rehabilitator may,
upon an order for rehabilitation, within one year or such other longer time as
applicable law may permit, institute an action or proceeding on behalf of the insurer
upon any cause of action against which the period of limitation fixed by applicable
law had not expired at the time of the filing of the petition upon which such order is
entered.

(3) Any guaranty association or foreign guaranty association covering life or
health insurance or annuities shall have standing to appear in any court proceeding
concerning the rehabilitation of a life or health insurer if such association is or may
become liable to act as a result of the rehabilitation.

(4) Notwithstanding subsection (1) of this section and any other provision of
this title, a federal home loan bank shall not be stayed, enjoined, or prohibited from
exercising or enforcing any right or cause of action regarding collateral pledged
under a security agreement or under any pledge agreement, security agreement,
collateral agreement, guarantee agreement, or other similar arrangement or credit
enhancement relating to a security agreement to which the federal home loan bank
is a party.

Legislative History

Source: L. 92: Entire part R&RE, p. 1441, � 14, effective July 1. L. 2014: (4) added, (HB 14-1215), ch. 57, p. 257, � 3, effective March 21.