Sec. 8115.
(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 90 days and such additional time as is necessary for the rehabilitator to obtain proper representation and prepare for further proceedings. The rehabilitator shall take action respecting the pending litigation as he or she considers necessary in the interests of justice and for the protection of creditors, policyholders, and the public. The rehabilitator shall consider immediately all litigation pending outside this state and shall petition the courts having jurisdiction over that litigation for stays if necessary to protect the insurer's estate.
(2) A statute of limitations or defense of laches shall not run with respect to 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 60 days after the order of rehabilitation is entered or the petition is denied.
(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.
History: Add. 1989, Act 302, Imd. Eff. Jan. 3, 1990 Popular Name: Act 218
Structure Michigan Compiled Laws
Chapter 500 - Insurance Code of 1956
Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302)
218-1956-81 - Chapter 81 Supervision, Rehabilitation, and Liquidation (500.8101...500.8160)
Section 500.8101 - Construction and Purpose of Chapter.
Section 500.8102 - Applicability of Proceedings Authorized by Chapter.
Section 500.8103 - Definitions.
Section 500.8104 - Commencement of Delinquency Proceeding; Jurisdiction; Stay of Proceedings.
Section 500.8105 - Receiver; Application for Relief.
Section 500.8107 - Official Bonds.
Section 500.8108a - Prohibited Conduct by Insurer.
Section 500.8110 - Seizure Order.
Section 500.8111 - Confidentiality; Exception; “Third Parties” Defined.
Section 500.8112 - Rehabilitation of Insurer; Petition; Grounds.
Section 500.8117 - Liquidation of Domestic or Alien Insurer; Basis.
Section 500.8120 - Dissolution of Corporation.
Section 500.8122 - Notice of Liquidation; Filing Claims; Changes of Address.
Section 500.8123 - Notice by Agent to Policyholder; Report of Compliance; Penalty; Waiver.
Section 500.8129 - Claim of Creditor; Allowance; Excused Late Filing.
Section 500.8130 - Setoff or Counterclaim.
Section 500.8139 - Denial of Claim; Filing of Objections; Hearing; Notice.
Section 500.8140 - Subrogation to Rights of Creditor; Distribution; Excess Received by Creditor.
Section 500.8141a - Payment of Special Deposit Claims; Priority; Transfer of Special Deposits.
Section 500.8144 - Distributions; Manner of Payment; Distribution of Assets in Kind.
Section 500.8145 - Disposition of Unclaimed or Withheld Funds.
Section 500.8146 - Application for Discharge.
Section 500.8147 - Petition to Reopen Proceedings.
Section 500.8148 - Retention or Destruction of Records.
Section 500.8150 - Conservator.
Section 500.8152 - Vesting of Title in Domiciliary Liquidator or Commissioner; Filing Claims.
Section 500.8154 - Institution of Proceedings Under MCL 500.8109 to 500.8111.
Section 500.8155 - Filing of Claims; Proof; Conclusiveness of Final Allowance of Claims.
Section 500.8157 - Prohibited Action or Proceeding.
Section 500.8159 - Failure to Transfer Assets.
Section 500.8160 - Repealed. 2001, Act 143, Imd. Eff. Oct. 26, 2001.