(1) Upon
issuance of an order appointing a liquidator of a domestic
insurer or of an alien insurer domiciled in this state, an action
at law or equity or in arbitration may not be brought against the
insurer or liquidator, whether in this state or elsewhere, nor
may such an existing action be maintained or further presented
after issuance of the order. The courts of this state shall give
full faith and credit to injunctions against the liquidator or
the company when the injunctions are included in an order to
liquidate an insurer issued under laws in other states
corresponding to this subsection. 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, the liquidator may intervene in the action.
The liquidator may defend an action in which he or she intervenes
under this section at the expense of the estate of the insurer.
(2) The liquidator may institute an action or proceeding
pursuant to an order of rehabilitation, within the later of two
years following entry of the order or two years of the date the
liquidator discovers, or in the exercise of reasonable care
should have discovered, the injury from which the action or
proceeding arose and its cause. However, actions against former
directors, officers, and employees brought pursuant to an order
of rehabilitation for the benefit or the protection of
subscribers, policy beneficiaries, or the general public is
subject to the limitations period of RCW 4.16.160.
(3) A statute of limitation or defense of laches does not
run with respect to an action against an insurer between the
filing of a petition for liquidation against an insurer and the
denial of the petition. An action against the insurer that might
have been commenced when the petition was filed may be commenced
for at least sixty days after the petition is denied.
(4) A guaranty association or foreign guaranty association
has standing to appear in a court proceeding concerning the
liquidation of an insurer if the association is or may become
liable to act as a result of the liquidation.
[2007 c 80 § 11; 1993 c 462 § 63.]
NOTES:
Severability -- Implementation -- 1993 c 462: See RCW 48.31B.901 and 48.31B.902.