§ 507c-15

507C.15 Actions by and against rehabilitator. 1. A court in this state, before which an action or proceeding in which the insurer is a party or is obligated to defend a party is pending when a rehabilitation order against theinsurer is entered, shall stay the action or proceeding for ninety days and any additional timeas necessary for the rehabilitator to obtain proper representation and prepare for furtherproceedings. The rehabilitator shall take action respecting the pending litigation as necessaryin the interests of justice and for the protection of creditors, policyholders, and the public.The rehabilitator shall immediately consider all litigation pending outside this state and shallpetition the courts having jurisdiction over that litigation for stays whenever necessary toprotect the estate of the insurer. 2. A statute of limitations or defense of laches shall not run in an action by or against an insurer between the filing of a petition for appointment of a rehabilitator for that insurer andthe order granting or denying that petition. An action by or against the insurer that mighthave been commenced when the petition was filed may be commenced for at least sixty daysafter

hat insurer andthe order granting or denying that petition. An action by or against the insurer that mighthave been commenced when the petition was filed may be commenced for at least sixty daysafter the order of rehabilitation is entered or the petition is denied. The rehabilitator, upon theissuance of an order for rehabilitation pursuant to section 507C.13, may institute an actionor proceeding on behalf of the insurer based upon a cause of action for which the period oflimitation has not expired at the time of the filing of the petition for an order to rehabilitate.The action or proceeding by the rehabilitator may be instituted within one year or a longerperiod if provided by applicable law, of the issuance of the order for rehabilitation. 3. A guaranty association or foreign guaranty association covering life or health insurance or annuities shall have standing to appear in a court proceeding concerning the rehabilitationof a life or health insurer if the association is or may become liable to act as a result of therehabilitation. 84 Acts, ch 1175, §15; 92 Acts, ch 1117, §17 Sat Dec 23 00:39:36 2023 Iowa Code 2024, Section 507C.15 (17, 0)