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304.33-270 Actions by and against liquidator.
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Termination of actions against insurer by order appointing liquidator. Upon
issuance of any order appointing the commissioner liquidator of a domestic
insurer or of an alien insurer domiciled in this state, no actions may be
instituted against the insurer or the liquidator without approval of the court and
all actions and all proceedings against the insurer whether in this state or
elsewhere shall be abated and the liquidator shall not intervene in them, except
as provided in this subsection. Whenever in the liquidator's judgment an action
in this state has proceeded to a point where fairness or convenience would be
served by its continuation to judgment, he or she may apply to the court for
leave to defend or to be substituted for the insurer, and if the court gives him or
her leave, the action shall not be abated. 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, with approval of the
court the liquidator may intervene in the action. The liquidator may defend any
action in which he or she intervenes under this section at the expense of the
estate of the insurer.
Statute of limitations on claims by insurer. The liquidator may, within two (2)
years subsequent to the entry of an order for liquidation or within such further
time as applicable law permits, 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 such 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 any such 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 such action or do any such act, required of or
permitted to the insurer, within a period of sixty (60) days subsequent to the
entry of an order for liquidation, or within such further period as is permitted by
the agreement, or in the proceeding or by applicable law, or within such further
period as is shown to the satisfaction of the court not to be unfairly prejudicial
to the other party.
Statutes of limitations on claims against insurer. The time between the filing of
a petition for liquidation against an insurer and the denial of the petition 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 petition is denied.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1448, effective July 15, 2010. -Amended 1990 Ky. Acts ch. 422, sec. 19, effective July 13, 1990. -- Created
1970 Ky. Acts ch. 301, subtit. 33, sec. 27, effective June 18, 1970.
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