§ 27-14.3-19 - Actions by and against rehabilitator. - Rhode Island Statutes

SECTION 27-14.3-19

   § 27-14.3-19  Actions by and againstrehabilitator. – (a) Any court in this state before which any action or proceeding in which theinsurer is a party, or is obligated to defend a party, is pending when arehabilitative order against the insurer is entered shall stay the action orproceeding for ninety (90) days and any additional time as is necessary for therehabilitator to obtain proper representation and prepare for furtherproceedings. The rehabilitator shall take any action respecting the pendinglitigation as he or she deems necessary in the interests of justice and for theprotection of creditors, policyholders, and the public. The rehabilitator shallimmediately consider all litigation pending outside of this state and shallpetition the courts having jurisdiction over that litigation for injunctionsand stays whenever necessary to protect the estate of the insurer.

   (b) No statute of limitations or defense of laches shall runwith respect to any action by or against an insurer between the filing of apetition for appointment of a rehabilitator for that insurer and the ordergranting or denying that petition. Any action against the insurer that mighthave been commenced when the petition was filed may be commenced for at leastsixty (60) days after the order of rehabilitation is entered or the petition isdenied. The rehabilitator may, upon an order for rehabilitation, within oneyear or other longer time as applicable law may permit, institute an action orproceeding on behalf of the insurer upon any cause of action against which theperiod of limitation fixed by applicable law has not expired at the time of thefiling of the petition upon which the order is entered.

   (c) Any guaranty association or foreign guaranty associationcovering life or health insurance or annuities shall have standing to appear inany court proceeding concerning the rehabilitation of a life or health insurerif the association is or may become liable to act as a result of therehabilitation.