§ 26.1-06.1-23 — Actions by and against liquidator

North Dakota § 26.1-06.1-23

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-06.1: Insurance Company Rehabilitation and Liquidation

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 may be
brought against the insurer or liquidator, whether in this state or elsewhere, nor may
any existing actions be maintained or further presented after issuance of the 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 the 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. In any action in which the liquidator intervenes under this
section, the liquidator may defend the action 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. If, 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 if 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 if 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 action or do any act, required of or permitted to the
insurer, 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 runs 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 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 the
association is or may become liable to act as a result of the liquidation.