§ 27-14.3-19. Actions by and against rehabilitator.
(a) Any court in this state before which any action or proceeding in which the insurer is a party, or is obligated to defend a party, is pending when a rehabilitative order against the insurer is entered shall stay the action or proceeding for ninety (90) days and any additional time as is necessary for the rehabilitator to obtain proper representation and prepare for further proceedings. The rehabilitator shall take any action respecting the pending litigation as he or she deems 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 of this state and shall petition the courts having jurisdiction over that litigation for injunctions and stays whenever necessary to protect the estate of the insurer.
(b) No statute of limitations or defense of laches shall run with respect to any 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. Any action against the insurer that might have been commenced when the petition was filed may be commenced for at least sixty (60) days after the order of rehabilitation is entered or the petition is denied. The rehabilitator may, upon an order for rehabilitation, within one year or other longer time as applicable law may permit, institute an action or proceeding on behalf 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 the order is entered.
(c) Any guaranty association or foreign guaranty association covering life or health insurance or annuities shall have standing to appear in any 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 of Section.P.L. 1993, ch. 248, § 1.
Structure Rhode Island General Laws
Chapter 27-14.3 - Insurers’ Rehabilitation and Liquidation Act
Section 27-14.3-1. - Short title — Construction — Purpose.
Section 27-14.3-2. - Applicability.
Section 27-14.3-3. - Definitions.
Section 27-14.3-4. - Jurisdiction and venue.
Section 27-14.3-5. - Injunctions and orders.
Section 27-14.3-6. - Cooperation of officers, owners, and employees.
Section 27-14.3-7. - Repealed.
Section 27-14.3-8. - Condition on release from delinquency proceedings.
Section 27-14.3-9. - Immunity and indemnification of the receiver and employees.
Section 27-14.3-10. - Court’s seizure order.
Section 27-14.3-11. - Commencement of formal delinquency proceeding.
Section 27-14.3-12. - Return of summons and summary hearing.
Section 27-14.3-13. - Proceedings for expedited trial — Continuances, discovery, and evidence.
Section 27-14.3-14. - Decision and appeals.
Section 27-14.3-15. - Confidentiality of hearings.
Section 27-14.3-16. - Grounds for rehabilitation.
Section 27-14.3-17. - Rehabilitation order.
Section 27-14.3-18. - Powers and duties of rehabilitator.
Section 27-14.3-19. - Actions by and against rehabilitator.
Section 27-14.3-20. - Termination of rehabilitation.
Section 27-14.3-21. - Grounds for liquidation.
Section 27-14.3-22. - Liquidation orders.
Section 27-14.3-23. - Continuance of coverage.
Section 27-14.3-24. - Dissolution of insurer.
Section 27-14.3-25. - Powers of liquidator.
Section 27-14.3-26. - Notice to creditors and others.
Section 27-14.3-27. - Duties of agents or insurance producers.
Section 27-14.3-28. - Actions by and against liquidator.
Section 27-14.3-29. - Collection and list of assets.
Section 27-14.3-30. - Fraudulent transfers prior to petition.
Section 27-14.3-31. - Fraudulent transfer after petition.
Section 27-14.3-32. - Voidable preferences and liens.
Section 27-14.3-33. - Claims of holders of void or voidable rights.
Section 27-14.3-34. - Setoffs.
Section 27-14.3-35. - Assessments.
Section 27-14.3-36. - Reinsurer’s liability.
Section 27-14.3-37. - Recovery of premiums owed.
Section 27-14.3-38. - Domiciliary liquidator’s proposal to distribute assets.
Section 27-14.3-39. - Filing of claims.
Section 27-14.3-40. - Proof of claim.
Section 27-14.3-41. - Special claims.
Section 27-14.3-42. - Special provisions for third party claims.
Section 27-14.3-43. - Disputed claims.
Section 27-14.3-44. - Claims of surety.
Section 27-14.3-45. - Secured creditor’s claims.
Section 27-14.3-46. - Priority of distribution.
Section 27-14.3-46.1. - Insurer assessments.
Section 27-14.3-47. - Liquidator’s recommendations to the court.
Section 27-14.3-48. - Distribution of assets.
Section 27-14.3-49. - Unclaimed and withheld funds.
Section 27-14.3-50. - Termination of proceedings.
Section 27-14.3-51. - Reopening liquidation.
Section 27-14.3-52. - Disposition of records during and after termination of liquidation.
Section 27-14.3-53. - External audit of receiver’s books.
Section 27-14.3-54. - Conservation of property of foreign or alien insurers found in this state.
Section 27-14.3-55. - Liquidation of property of foreign or alien insurers found in this state.
Section 27-14.3-56. - Domiciliary liquidators in other states.
Section 27-14.3-57. - Ancillary formal proceedings.
Section 27-14.3-58. - Ancillary summary proceedings.
Section 27-14.3-59. - Claims of nonresidents against insurers domiciled in this state.
Section 27-14.3-60. - Claims of residents against insurers domiciled in reciprocal states.
Section 27-14.3-61. - Attachment, garnishment and levy of execution.
Section 27-14.3-62. - Interstate priorities.
Section 27-14.3-63. - Subordination of claims for noncooperation.