§ 10-3-523 — Actions by and against liquidator

Colorado § 10-3-523

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Regulation of Insurance Companies

Text

(1) Upon issuance of an order
appointing a liquidator of a domestic insurer or of an alien insurer domiciled in this
state, no action at law or equity or in arbitration shall be brought against the insurer
or liquidator, whether in this state or elsewhere, nor shall any such existing actions
be maintained or further presented after issuance of such order. The courts of this
state shall give full faith and credit to injunctions against the liquidator or the
company or the continuation of existing actions against the liquidator or the
company, when such injunctions are included in an order to liquidate an insurer
issued pursuant to corresponding provisions in other states. Whenever, in the
liquidator's judgment, protection of the estate of the insurer necessitates
intervention in an action against the insurer that is pending outside this state, the
liquidator may intervene in the action. The liquidator may defend any action in
which the liquidator intervenes under this section at the expense of the estate of
the insurer.

(2) The liquidator may, upon or after an order for liquidation, within two years
or such other longer time as applicable law may permit, institute an action or
proceeding on behalf of the estate of the insurer upon any cause of action against
which the period of limitation fixed by applicable law has not expired at the time of
the filing of the petition upon which such order is entered. Where, by any
agreement, a period of limitation is fixed for instituting a suit or proceeding upon
any claim, or for filing any claim, proof of claim, proof of loss, demand, notice, or the
like, or where in any proceeding, judicial or otherwise, a period of limitation is fixed,
either in the proceeding or by applicable law, for taking any action, filing any claim
or pleading, or doing any act, and where in any such case the period had not expired
at the date of the filing of the petition, the liquidator may, for the benefit of the
estate, take any such action or do any such act required of or permitted to the
insurer, if the liquidator does so within a period of one hundred eighty days
subsequent to the entry of an order for liquidation or within such further period as is
shown to the satisfaction of the court not to be unfairly prejudicial to the other
party.

(3) No statute of limitation or defense of laches shall run with respect to any
action against an insurer between the filing of a petition for liquidation against the
insurer and the denial of the petition. Any action against the insurer that might have
been commenced when the petition was filed may be commenced for at least sixty
days after the petition is denied.

(4) Any guaranty association or foreign guaranty association shall have
standing to appear in any court proceeding concerning the liquidation of an insurer
if such association is or may become liable to act as a result of the liquidation.

Legislative History

Source: L. 92: Entire part R&RE, p. 1455, � 14, effective July 1.