(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 may be brought against the insurer or liquidator, whether in this State or elsewhere; nor may any existing actions be maintained or further presented after issuance of the order. The courts of this State shall give full faith and credit to injunctions against the liquidator or the company or the continuation of existing actions against the liquidator or the company, when the 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 the 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 the 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 action or do any act, required of or permitted to the insurer, within a period of one hundred eighty days after the entry of an order for liquidation, or within a further period that 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 runs 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 has standing to appear in any court proceeding concerning the liquidation of an insurer if the association is or may become liable to act as a result of the liquidation.
HISTORY: Former 1976 Code Section 38-5-2130 [1982 Act No. 384, Section 24] recodified as Section 38-27-430 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.