HB-6226, As Passed Senate, August 30, 2006
June 20, 2006, Introduced by Rep. Mortimer and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 8124 (MCL 500.8124), as added by 1989 PA 302.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 8124. (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 shall not be brought
against the insurer or liquidator, whether in this state or
elsewhere, and any such existing action shall not be maintained or
further presented after issuance of such order. The courts of this
state shall give full faith and credit to injunctions against the
liquidator or the company or the continuation of existing actions
against the liquidator or the company, if such injunctions are
included in an order to liquidate an insurer issued pursuant to
corresponding provisions in other states. If, 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, he or she 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, upon or after an order for
liquidation, within 2 years or such time in addition to 2 years as
applicable law may permit, 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
the order is entered. If, by agreement, a period of limitation is
fixed for instituting a suit or proceeding upon a claim, or for
filing a claim, proof of claim, proof of loss, demand, notice, or
the like, or if in a proceeding, judicial or otherwise, a period of
limitation is fixed, either in the proceeding or by applicable law,
for taking action, filing a claim or pleading, or doing any act,
and the period had not expired at the date of the filing of the
petition, the liquidator may, for the benefit of the estate, take
action or do an act required of or permitted to the insurer within
a period of 180 days subsequent to the entry of an order for
liquidation, or within such further period as is shown to the
satisfaction of the court not to be unfairly prejudicial to the
other party.
(3) A statute of limitation or defense of laches shall 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 at least
within 60 days after the petition is denied.
(4)
A guaranty association or foreign guaranty association
shall
have 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.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 93rd Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 6235(request no.
07127'06).
(b) Senate Bill No.____ or House Bill No. 6234(request no.
07128'06).
(c) Senate Bill No.____ or House Bill No. 6233(request no.
07129'06).
(d) Senate Bill No.____ or House Bill No. 6232(request no.
07130'06).
(e) Senate Bill No.____ or House Bill No. 6231(request no.
07131'06).
(f) Senate Bill No.____ or House Bill No. 6230(request no.
07132'06).
(g) Senate Bill No.____ or House Bill No. 6229(request no.
07133'06).
(h) Senate Bill No.____ or House Bill No. 6228(request no.
07134'06).
(i) Senate Bill No.____ or House Bill No. 6227(request no.
07135'06).
(j) Senate Bill No.____ or House Bill No. 6225(request no.
07137'06).
(k) Senate Bill No.____ or House Bill No. 6224(request no.
07138'06).
(l) Senate Bill No.____ or House Bill No. 6223(request no.
07139'06).