§ 27-14.3-28 - Actions by and against liquidator. - Rhode Island Statutes

SECTION 27-14.3-28

   § 27-14.3-28  Actions by and againstliquidator. – (a) Upon issuance of an order appointing a liquidator of a domestic insurer orof an alien insurer domiciled in this state, no action at law or equity or inarbitration shall be brought against the insurer or liquidator, whether in thisstate or another place, nor shall any existing actions be maintained or furtherpresented after the issuance of the order. The courts of this state shall givefull faith and credit to injunctions against new actions against the liquidatoror the company or the continuation of existing actions against the liquidatoror the company, when the injunctions are included in an order to liquidate aninsurer issued pursuant to corresponding provisions in other states. Whenever,in the liquidator's judgment, protection of the estate of the insurernecessitates intervention in an action against the insurer that is pendingoutside of this state, he or she may intervene in the action. The liquidatormay defend any action in which he or she intervenes under this section at theexpense of the estate of the insurer.

   (b) The liquidator may, upon or after an order forliquidation, within two (2) years or a longer time as applicable law maypermit, institute an action or proceeding on behalf of the estate of theinsurer upon any cause of action against which the period of limitation fixedby applicable law has not expired at the time of the filing of the petitionupon which the order is entered. When, by any agreement, a period of limitationis fixed for instituting a suit or proceeding upon any claim, or for filing anyclaim, proof of claim, proof of loss, demand, notice, or the like, or when inany proceeding, judicial or otherwise, a period of limitation is fixed, eitherin the proceeding or by applicable law, for taking any action, filing any claimor pleading, or doing any act, and when in this case the period had not expiredat the date of the filing of the petition the liquidator may, for the benefitof the estate, take any action or do any act, required of or permitted to theinsurer, within a period of one hundred eighty (180) days subsequent to theentry of an order for liquidation, or within a further period that is shown tothe satisfaction of the court not to be unfairly prejudicial to the other party.

   (c) No statute of limitations or defense of laches shall runwith respect to any action against an insurer between the filing of a petitionfor liquidation against an insurer and the denial of the petition. Any actionagainst the insurer that might have been commenced when the petition was filedmay be commenced for at least sixty (60) days after the petition is denied.

   (d) Any guaranty association or foreign guaranty associationshall have standing to appear in any court proceeding concerning theliquidation of an insurer if the association is or may become liable to act asa result of the liquidation.