Vermont § 7054 - Actions by and against rehabilitator

§ 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.)