60B.28 ACTIONS BY AND AGAINST LIQUIDATOR.
Subdivision 1. Termination of actions against insurer by order appointing liquidator.
Upon issuance of any order appointing the commissioner liquidator of a domestic insurer or
of an alien insurer domiciled in this state, all actions and all proceedings against the insurer
whether in this state or elsewhere shall be abated and the liquidator shall not intervene in them,
except as provided in this section. Whenever in the liquidator's judgment an action in this state
has proceeded to a point where fairness or convenience would be served by its continuation to
judgment, the liquidator may apply to the court for leave to defend or to be substituted for the
insurer, and if the court gives leave, the action shall not be abated. Whenever in the liquidator's
judgment, protection of the estate of the insurer necessitates intervention in an action against the
insurer that is pending outside this state, with approval of the court the liquidator may intervene in
the action. The liquidator may defend any action in which the liquidator intervenes under this
section at the expense of the estate of the insurer.
Subd. 2. Statutes of limitations on claims by insurer.
The liquidator may, within two years
subsequent to the entry of an order for liquidation or within such further time as applicable law
permits, 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 has not expired at the time of
the filing of the petition upon which such order is entered. Where, by any agreement, a period
of limitation is fixed for instituting a suit 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 such case the period
had not expired at the date of the filing of the petition, the liquidator may, for the benefit of the
estate, take any such action or do any such act, required of or permitted to the insurer, within a
period of 60 days subsequent to the entry of an order for liquidation, or within such further period
as is permitted by the agreement, or in the proceeding or by applicable law, or within such further
period as is shown to the satisfaction of the court not to be unfairly prejudicial to the other party.
Subd. 3. Statutes of limitations on claims against insurer.
The time between the filing of a
petition for liquidation against an insurer and the denial of the petition shall not be considered
to be a part of the time within which any action may be commenced against the insurer. 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.
History: 1969 c 708 s 28; 1986 c 444