2006 Utah Code - 31A-27-317 — Actions by and against a liquidator.

     31A-27-317.   Actions by and against a liquidator.
     (1) (a) The filing of a petition for liquidation of a domestic insurer or of an alien insurer domiciled in this state stays all actions and all proceedings:
     (i) (A) at law;
     (B) in equity; or
     (C) in arbitration;
     (ii) against the insurer or liquidator; and
     (iii) regardless of whether the action is brought in this state or elsewhere.
     (b) Any action or proceeding existing at the time the petition for liquidation is filed may not be enforced, perfected, maintained, or further presented after the filing of the petition.
     (c) The stay of all actions under this Subsection (1) is automatic.
     (d) The liquidator may not intervene or defend in an action or proceeding except as provided in this section.
     (2) Except as provided under Section 31A-27-323, filing a petition for liquidation stays the exercise of any right of setoff against the insurer.
     (3) (a) If the liquidator determines that protection of the estate of the insurer necessitates intervention in an action pending against the insurer, the liquidator may intervene in the action.
     (b) An action described in Subsection (1)(a) is not stayed if:
     (i) the liquidator 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 by the liquidator in defending any action in which the liquidator intervenes under this section.
     (4) (a) The liquidator may 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 had not expired at the time of the filing of the petition.
     (b) Where, by any agreement, a period of limitation is fixed for instituting an action 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 of these sections the period had not expired at the date of the filing of the petition for liquidation, the liquidator may, for the benefit of the estate, take any action or do any act, required of or permitted to the insurer, within a period of 180 days subsequent to the entry of an order for liquidation, or within any further period as is permitted by the agreement, in the proceeding, or by applicable law, or within any further time period as is shown to the satisfaction of the court not to be unfairly prejudicial to the other party.
     (5) (a) No statute of limitations runs and no defense of laches is available with respect to any action against an insurer between the filing of a petition for liquidation and the denial of the petition.
     (b) Any action against the insurer that might have been commenced when the petition was filed may be commenced for at least 60 days after the petition is denied.
     (6) Any guaranty fund or association that may become liable as a result of the liquidation of an insurer may intervene in any court proceeding concerning the liquidation of the insurer.

Amended by Chapter 308, 2002 General Session