The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
003
:
FORMAL PROCEEDINGS
(Cite as: 8 V.S.A. § 7054)
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§ 7054. Actions by and against rehabilitator
(a) 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 the insurer is entered shall stay the action or proceeding for 90 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 or she 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.
(b) A statute of limitations or defense of laches shall not 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. An action by or
against the insurer that might have been commenced when the petition was filed may
be commenced for at least 60 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 law has not expired at the time
of the filing of the petition upon which such order is entered. (Added 1991, No. 45, § 2, eff. May 29, 1991.)