HRS §431:15-304
Court cases involving the insurer are paused during rehabilitation
When an insurance company is put into rehabilitation, court cases involving it are paused for 90 days or longer so the rehabilitator can prepare. The rehabilitator decides what to do about pending cases and can ask courts to pause cases in other states. Time limits for filing lawsuits are also paused during this process.
courts
The statute, as written — Actions by and against rehabilitator
(a) 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 the rehabilitator 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 the litigation for stays whenever necessary to protect the estate of the insurer. (b) 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 by or against the insurer that might have been commenced when the petition was filed may be commenced for at least sixty days after the order [of] rehabilitation is entered or the petition is denied.
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