507C.15 - ACTIONS BY AND AGAINST REHABILITATOR.

        507C.15  ACTIONS BY AND AGAINST REHABILITATOR.         1.  A court in this state, before which an 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 days and any      additional time as necessary for the rehabilitator to obtain proper      representation and prepare for further proceedings.  The      rehabilitator shall take action respecting the pending litigation as      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 this state and      shall petition the courts having jurisdiction over that litigation      for stays whenever necessary to protect the estate of the insurer.         2.  A statute of limitations or defense of laches shall not run in      an 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.  An action by or against the      insurer that might have been commenced when the petition was filed      may be commenced for at least sixty days after the order of      rehabilitation is entered or the petition is denied.  The      rehabilitator, upon the issuance of an order for rehabilitation      pursuant to section 507C.13, may institute an action or proceeding on      behalf of the insurer based upon a cause of action for which the      period of limitation has not expired at the time of the filing of the      petition for an order to rehabilitate.  The action or proceeding by      the rehabilitator may be instituted within one year or a longer      period if provided by applicable law, of the issuance of the order      for rehabilitation.         3.  A guaranty association or foreign guaranty association      covering life or health insurance or annuities shall have standing to      appear in a 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.  
         Section History: Recent Form
         84 Acts, ch 1175, § 15; 92 Acts, ch 1117, § 17