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304.33-170 Actions by and against rehabilitator.
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Stays in pending litigation. On request of the rehabilitator, any court in this
state before which any action or proceeding by or against an insurer is pending
when a rehabilitation order against the insurer is entered shall stay the action
or proceeding for such time as is necessary for the rehabilitator to obtain
proper representation and prepare for further proceedings. The court that
entered the rehabilitation order shall order the rehabilitator to take such action
respecting the pending litigation as the court deems necessary in the interests
of justice and for the protection of creditors and policyholders. 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.
Statutes of limitations on claims by insurer. The time between the filing of a
petition for rehabilitation against an insurer and denial of the petition or an
order of rehabilitation shall not be considered to be a part of the time within
which any action may be commenced by the insurer. Any action by 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.
Statutes of limitations on claims against insurer. The time between the filing of
a petition for rehabilitation against an insurer and the denial of the petition or an
order of rehabilitation shall not be considered to be a part of the time within
which any action may be commenced against the insurer. 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.
A guaranty association or a foreign guaranty association shall have standing to
appear in any court proceeding concerning the rehabilitation of an insurer if
such association is or may become liable to act as a result of the rehabilitation.
Effective:July 13, 1990
History: Amended 1990 Ky. Acts ch. 422, sec. 12, effective July 13, 1990. -Created 1970 Ky. Acts ch. 301, subtit. 33, sec. 17, effective June 18, 1970.
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