§ 27-14.3-19. Actions by and against rehabilitator.
(a) 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 rehabilitative order
against the insurer is entered shall stay the action or proceeding for ninety (90)
days and any additional time as is necessary for the rehabilitator to obtain proper
representation and prepare for further proceedings. The rehabilitator shall take any
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.
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§ 27-14.3-19. Actions by and against rehabilitator.
(a) 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 rehabilitative order
against the insurer is entered shall stay the action or proceeding for ninety (90)
days and any additional time as is necessary for the rehabilitator to obtain proper
representation and prepare for further proceedings. The rehabilitator shall take any
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 of this
state and shall petition the courts having jurisdiction over that litigation for injunctions
and stays whenever necessary to protect the estate of the insurer.
(b) 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
for at least sixty (60) 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 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 has not expired at the time of the filing of the petition
upon which the order is entered.
(c) 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 the association is or may become liable
to act as a result of the rehabilitation.