2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION
507C.15 - ACTIONS BY AND AGAINST REHABILITATOR.

        507C.15  ACTIONS BY AND AGAINST REHABILITATOR.
         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 ninety days and any
      additional time as necessary for the rehabilitator to obtain proper
      representation and prepare for further proceedings.  The
      rehabilitator shall take action respecting the pending litigation as
      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.
         2.  A statute of limitations or defense of laches shall not run in
      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 sixty days after the order of
      rehabilitation is entered or the petition is denied.  The
      rehabilitator, upon the issuance of an order for rehabilitation
      pursuant to section 507C.13, may institute an action or proceeding on
      behalf of the insurer based upon a cause of action for which the
      period of limitation has not expired at the time of the filing of the
      petition for an order to rehabilitate.  The action or proceeding by
      the rehabilitator may be instituted within one year or a longer
      period if provided by applicable law, of the issuance of the order
      for rehabilitation.
         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.  

         84 Acts, ch 1175, § 15; 92 Acts, ch 1117, § 17