§ 27-9-3-4 — Pending actions; protection of insurer after rehabilitation order

(a) Any court in Indiana 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 ninety (90) days and for
any additional time as is necessary for the rehabilitator to obtain proper
representation and prepare for further proceedings. The rehabilitator
shall take action respecting the pending litigation as he considers
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 Indiana and shall petition the
courts having jurisdiction over that litigation for stays whenever
necessary to protect the estate of the insurer.
(b) The statute of limitations or the defense of laches shall not 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 by or against the
insurer that might have been commenced when the petition was filed
may be commenced for at least sixty (60) days after the order of
rehabilitation is entered or the petition is denied.
(c) Any guaranty association or foreign guaranty association
covering life or health insurance or annuities has standing to appear in
any court proceeding concerning the rehabilitation of a life or health
insurer if that association is or may become liable to act as a result of
the rehabilitation.
As added by Acts 1979, P.L.255, SEC.1.