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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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