(a) 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 shall be brought against the insurer or liquidator, whether in this state or elsewhere, nor shall any such existing actions be maintained or further proceedings presented after issuance of such order. The courts of this state shall give full faith and credit to injunctions against new actions against the liquidator or the company or the continuation of existing actions against the liquidator or the company, when such 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, he may intervene in the action. The liquidator may defend any action in which he intervenes under this section at the expense of the estate of the insurer.
(b) The liquidator may, upon or after an order for liquidation, within two years or such time in addition to two years 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. Where, 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 where 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 where 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 such action or do any such 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.
(c) No statute of limitations or defense of laches shall run 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.
(d) Any guaranty association or foreign guaranty association shall have standing to appear in any court proceeding concerning the liquidation of an insurer if such association is or may become liable to act as a result of the liquidation.
(P.A. 79-382, S. 24; P.A. 92-93, S. 19.)
History: Sec. 38-444 transferred to Sec. 38a-926 in 1991; P.A. 92-93 made technical corrections for statutory consistency.
Structure Connecticut General Statutes
Section 38a-904. (Formerly Sec. 38-422). - Application of provisions.
Section 38a-905. (Formerly Sec. 38-423). - Definitions.
Section 38a-906. (Formerly Sec. 38-424). - Jurisdiction and venue.
Section 38a-907. (Formerly Sec. 38-425). - Injunctions, orders and stays.
Section 38a-908. (Formerly Sec. 38-426). - Cooperation of officers, owners and employees. Penalties.
Section 38a-910. (Formerly Sec. 38-428). - Continuation of delinquency proceedings.
Section 38a-911. (Formerly Sec. 38-429). - Delinquency proceeding: Limitations and conditions.
Section 38a-912. (Formerly Sec. 38-430). - Seizure order by court.
Section 38a-913. (Formerly Sec. 38-431). - Confidentiality of proceedings.
Section 38a-914. (Formerly Sec. 38-432). - Grounds for rehabilitation.
Section 38a-917. (Formerly Sec. 38-435). - Actions by and against rehabilitator.
Section 38a-918. (Formerly Sec. 38-436). - Order of liquidation. Termination of rehabilitation.
Section 38a-919. (Formerly Sec. 38-437). - Grounds for liquidation.
Section 38a-922. (Formerly Sec. 38-440). - Dissolution of insurer.
Section 38a-923. (Formerly Sec. 38-441). - Powers of liquidator.
Section 38a-924. (Formerly Sec. 38-442). - Notice to creditors and others. Requirements. Exceptions.
Section 38a-925. (Formerly Sec. 38-443). - Duties of agents. Penalty.
Section 38a-926. (Formerly Sec. 38-444). - Actions by and against liquidator.
Section 38a-927. (Formerly Sec. 38-445). - List of assets.
Section 38a-928. (Formerly Sec. 38-446). - Fraudulent transfers prior to petition.
Section 38a-929. (Formerly Sec. 38-447). - Fraudulent transfer after petition.
Section 38a-930. (Formerly Sec. 38-448). - Voidable preferences and liens. Exceptions.
Section 38a-931. (Formerly Sec. 38-449). - Claims of holders of void or voidable rights.
Section 38a-932. (Formerly Sec. 38-450). - Set-offs and counterclaims. Accounting statements.
Section 38a-933. (Formerly Sec. 38-451). - Assessments.
Section 38a-933a. - Amounts recoverable. Affiliate liability. Timing of proceedings.
Section 38a-934. (Formerly Sec. 38-452.) - Reinsurer's liability.
Section 38a-935. (Formerly Sec. 38-453). - Recovery of premiums owed. Penalty. Appeals.
Section 38a-936. (Formerly Sec. 38-454). - Liquidator's proposal to distribute assets.
Section 38a-937. (Formerly Sec. 38-455). - Filing of claims.
Section 38a-938. (Formerly Sec. 38-456). - Proof of claim.
Section 38a-939. (Formerly Sec. 38-457). - Special claims.
Section 38a-941. (Formerly Sec. 38-459). - Disputed claims. Hearings. Procedure.
Section 38a-942. (Formerly Sec. 38-460). - Claims of surety.
Section 38a-943. (Formerly Sec. 38-461). - Secured creditor's claims.
Section 38a-944. (Formerly Sec. 38-462). - Priority of distribution of claims.
Section 38a-945. (Formerly Sec. 38-463). - Liquidator's recommendations to the court.
Section 38a-946. (Formerly Sec. 38-464). - Distribution of assets.
Section 38a-947. (Formerly Sec. 38-465). - Unclaimed and withheld funds.
Section 38a-948. (Formerly Sec. 38-466). - Termination of proceedings.
Section 38a-949. (Formerly Sec. 38-467). - Reopening liquidation.
Section 38a-951. (Formerly Sec. 38-469). - External audit of the receiver's books.
Section 38a-954. (Formerly Sec. 38-472). - Domiciliary liquidators in other states.
Section 38a-955. (Formerly Sec. 38-473). - Ancillary formal proceedings.
Section 38a-956. (Formerly Sec. 38-474). - Ancillary summary proceedings.
Section 38a-960. (Formerly Sec. 38-478). - Interstate priorities.
Section 38a-961. (Formerly Sec. 38-479). - Subordination of claims for noncooperation.
Section 38a-962. - Definitions.
Section 38a-962a. - Applicability.
Section 38a-962b. - Administrative supervision by the commissioner.
Section 38a-962d. - Prohibited activities during supervision. Prior approval.
Section 38a-962e. - Contested action. Appeal.
Section 38a-962f. - Judicial or other delinquency proceedings.
Section 38a-962g. - Regulations.
Section 38a-962h. - Supervision proceeding: Contact with commissioner allowed.
Section 38a-962i. - Immunity from liability.