58-29B-36. Disposition of actions in which insurer a party pending when rehabilitation order entered.
125 words·~1 min read·
/sd/title-58/chapter-58-29/58-29b-36·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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 if necessary to protect the estate of the insurer.