§ 27-9-3-12 — Actions after liquidation orders

Indiana § 27-9-3-12

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 9: SUPERVISION; REHABILITATION
• Ch. 3: Formal Proceedings

Text

(a) Upon issuance of an order appointing a
liquidator of a domestic insurer or of an alien insurer domiciled in
Indiana, an action at law or equity may not be brought against the
insurer or liquidator, whether in Indiana or elsewhere, nor shall any
existing actions be maintained or further presented after issuance of an
order.
(b) The courts of Indiana 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 those
injunctions are included in an order to liquidate an insurer issued under
similar provisions in other states.
(c) 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 Indiana, the liquidator may intervene in the
action. The liquidator may defend any action in which he intervenes
under this section at the expense of the estate of the insurer.
(d) Within two (2) years after an order for liquidation (or a time in
addition to two (2) years as applicable law may permit) the liquidator
may 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 the order is entered.
(e) 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, within a
period of one hundred eighty (180) days after the entry of an order for
liquidation, or within such further period as is shown to the satisfaction
of the Marion County circuit court not to be unfairly prejudicial to the
other party.
(f) A statute of limitations or defense of laches shall not run with
respect to any action against an insurer between the filing of a petition
for liquidation against an insurer and the denial of the petition. Any
action against the insurer that might have been commenced when the
petition was filed may not be commenced for at least sixty (60) days
after the petition is denied.
(g) Any guaranty association or foreign guaranty association has
standing to appear in any court proceeding concerning the liquidation
of an insurer if that association is or may become liable to act as a
result of the liquidation.
As added by Acts 1979, P.L.255, SEC.1.