2006 Utah Code - 31A-27-305 — Actions by and against a rehabilitator.

     31A-27-305.   Actions by and against a rehabilitator.
     (1) (a) An order for rehabilitation under Section 31A-27-303 stays any action or proceeding:
     (i) (A) at law;
     (B) in equity; or
     (C) in arbitration;
     (ii) brought against the insurer or rehabilitator; and
     (iii) regardless of whether the action is brought in this state or elsewhere.
     (b) An action or proceeding existing at the time the order for rehabilitation is issued may not be enforced, perfected, maintained, or further presented after issuance of the order for rehabilitation.
     (c) The stay of all actions or proceedings provided in this Subsection (1) is automatic.
     (d) The rehabilitator may not intervene or defend in an action or proceeding except as provided in this section.
     (2) (a) If the rehabilitator determines that the protection of the estate of the insurer necessitates intervention in an action pending against the insurer, the rehabilitator may intervene in the action.
     (b) An action described in Subsection (1)(a) is not stayed if:
     (i) the rehabilitator applies to the court for:
     (A) leave to intervene or defend; or
     (B) ratification by the court of intervention; and
     (ii) the court grants the application.
     (c) The estate of the insurer may be charged for the expenses incurred if the rehabilitator is defending any action in which the rehabilitator intervenes under this section.
     (3) (a) No statute of limitations runs and no defense of laches arises with respect to any action by or against an insurer between the filing of a petition for rehabilitation against an insurer and the denial of the petition or an order of rehabilitation.
     (b) Any action by the insurer that might have been commenced when the petition was filed may be commenced by the insurer or rehabilitator for:
     (i) at least 60 days after:
     (A) the order of rehabilitation is entered; or
     (B) the petition is denied; or
     (ii) a longer period if ordered by the court.
     (c) This Subsection (3) does not limit the powers of the rehabilitator to bring actions under Sections 31A-27-319, 31A-27-320, 31A-27-321, 31A-27-322, and other provisions of this chapter.

Amended by Chapter 308, 2002 General Session