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Code · Missouri · Chapter 375

375.1170. Stay of other pending actions, duration — statute of limitations not to run.

337 words·~2 min read·/mo/chapter-375/375-1170

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375.1170. Stay of other pending actions, duration — statute of limitations not to run. — 1. Any court in this state before which any action or proceeding in which the insurer is a party, or is obligated to defend a party, is pending when a rehabilitation order against the insurer is entered shall stay the action or proceeding for ninety days and such additional time as is necessary for the rehabilitator to obtain proper representation and prepare for further proceedings. The rehabilitator shall take such action respecting the pending litigation as he deems necessary in 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 shall petition the courts having jurisdiction over that litigation for stays whenever necessary to protect the estate of the insurer.
2. No statute of limitations or defense of laches shall run with respect to any action by or against an insurer between the filing of a petition for appointment of a rehabilitator for that insurer and the order granting or denying that petition. Any action against the insurer that might have been commenced when the petition was filed may be commenced for at least one hundred twenty days after the order of rehabilitation is entered or the petition is denied. The rehabilitator may, upon an order for rehabilitation, within one year or such other longer time as applicable law may permit, institute an action or proceeding on behalf of the insurer upon any cause of action against which the period of limitation fixed by applicable laws has not expired at the time of the filing of the petition upon which such order is entered.
3. Any guaranty association or foreign guaranty association shall have standing to appear in any court proceeding concerning the rehabilitation of an insurer if such association is or has a reasonable probability of becoming liable to act as a result of the rehabilitation.
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(L. 1991 H.B. 385, et al. § 62)
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