(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 rehabilitation order against the insurer is entered shall stay the action or proceeding for ninety days and any additional time necessary for the rehabilitator to obtain proper representation and prepare for further proceedings. The rehabilitator shall take any action respecting the pending litigation he considers 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 this State and shall petition the courts having jurisdiction over that litigation for stays whenever necessary to protect the estate of the insurer.
(b) No statute of limitations or defense of laches runs 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 by or against the insurer that might have been commenced when the petition was filed may be commenced for at least sixty days after the order of rehabilitation is entered or the petition is denied.
(c) Any guaranty association or foreign guaranty association covering life or health insurance or annuities has 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: Former 1976 Code Section 38-5-2040 [1982 Act No. 384, Section 15] recodified as Section 38-27-340 by 1987 Act No. 155, Section 1.
Structure South Carolina Code of Laws
Chapter 27 - Insurers' Rehabilitation And Liquidation Act
Section 38-27-10. Short title.
Section 38-27-20. Construction.
Section 38-27-40. Persons covered.
Section 38-27-50. Definitions.
Section 38-27-60. Jurisdiction and venue.
Section 38-27-70. Injunctions and orders.
Section 38-27-80. Cooperation of officers, owners, and employees.
Section 38-27-110. Disabilities of delinquent insurer pending repayment to guaranty association.
Section 38-27-220. Court's seizure order.
Section 38-27-230. Confidentiality of hearings.
Section 38-27-310. Grounds for rehabilitation.
Section 38-27-320. Rehabilitation orders.
Section 38-27-330. Powers and duties of rehabilitator.
Section 38-27-340. Actions by and against rehabilitator.
Section 38-27-350. Termination of rehabilitation.
Section 38-27-360. Grounds for liquidation.
Section 38-27-370. Liquidation orders.
Section 38-27-380. Continuance of coverage.
Section 38-27-390. Dissolution of insurer.
Section 38-27-400. Powers of liquidator.
Section 38-27-410. Notice to creditors and others.
Section 38-27-420. Duties of agents.
Section 38-27-430. Actions by and against liquidator.
Section 38-27-440. Collection and list of assets.
Section 38-27-450. Fraudulent transfers prior to petition.
Section 38-27-460. Transfers after petition.
Section 38-27-470. Voidable preferences and liens.
Section 38-27-480. Claims of holders of voidable rights.
Section 38-27-500. Assessments.
Section 38-27-510. Reinsurer's liability.
Section 38-27-520. Recovery of premiums owed.
Section 38-27-530. Domiciliary liquidator's proposal to distribute assets.
Section 38-27-540. Filing of claims.
Section 38-27-550. Proof of claim.
Section 38-27-560. Special claims.
Section 38-27-570. Special provisions for third party and insureds' claims.
Section 38-27-580. Disputed claims.
Section 38-27-590. Claims of surety.
Section 38-27-600. Secured creditor's claims.
Section 38-27-610. Priority of distribution.
Section 38-27-620. Liquidator's recommendations to court.
Section 38-27-630. Distribution of assets.
Section 38-27-640. Unclaimed and withheld funds.
Section 38-27-650. Termination of proceedings.
Section 38-27-660. Reopening liquidation.
Section 38-27-670. Disposition of records during and after termination of liquidation.
Section 38-27-680. External audit of receiver's books.
Section 38-27-910. Conservation of property of alien or foreign insurers.
Section 38-27-920. Liquidation of property of alien or foreign insurers.
Section 38-27-930. Domiciliary liquidators in other states.
Section 38-27-940. Ancillary formal proceedings.
Section 38-27-950. Ancillary summary proceedings.
Section 38-27-960. Claims of nonresidents against insurers domiciled in South Carolina.
Section 38-27-970. Claims of residents against insurers domiciled in reciprocal states.
Section 38-27-980. Attachment, garnishment, and levy of execution.
Section 38-27-990. Interstate priorities.
Section 38-27-1000. Subordination of claims for noncooperation.