KRS 304.33-270: Actions by and against liquidator.

(1) Termination of actions against insurer by order appointing liquidator. Upon

issuance of any order appointing the commissioner liquidator of a domestic insurer

or of an alien insurer domiciled in this state, no actions may be instituted against the

insurer or the liquidator without approval of the court and all actions and all

proceedings against the insurer whether in this state or elsewhere shall be abated

and the liquidator shall not intervene in them, except as provided in this subsection.

Whenever in th e liquidator's judgment an action in this state has proceeded to a

point where fairness or convenience would be served by its continuation to

judgment, he or she may apply to the court for leave to defend or to be substituted

for the insurer, and if the court gives him or her leave, the action shall not be abated.

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, with approval of the c ourt the liquidator may intervene in the action. The

liquidator may defend any action in which he or she intervenes under this section at

the expense of the estate of the insurer.

(2) Statute of limitations on claims by insurer. The liquidator may, within two (2) years

subsequent to the entry of an order for liquidation or within such further time as

applicable law permits, institute an action or proceeding on behalf of the estate of

the insurer upon any cause of action against which the period of limitatio n fixed by

applicable law has not expired at the time of the filing of the petition upon which

such order is entered. Where, by any agreement, a period of limitation is fixed for

instituting a suit or proceeding upon any claim or for filing any claim, proo f of

claim, proof of loss, demand, notice or the like, or where in any proceeding, judicial

or otherwise, a period of limitation is fixed, either in the proceeding or by

applicable law, for taking any action, filing any claim or pleading or doing any act,

and where in any such case the period had not expired at the date of the filing of the

petition, the liquidator may, for the benefit of the estate, take any such action or do

any such act, required of or permitted to the insurer, within a period of sixty ( 60)

days subsequent to the entry of an order for liquidation, or within such further

period as is permitted by the agreement, or in the proceeding or by applicable law,

or within such further period as is shown to the satisfaction of the court not to be

unfairly prejudicial to the other party.

(3) Statutes of limitations on claims against insurer. The time between the filing of a

petition for liquidation against an insurer and the denial of the petition shall not be

considered to be a part of the time withi n which any action may be commenced

against the insurer. Any action against the insurer that might have been commenced

when the petition was filed may be commenced for at least sixty (60) days after the

petition is denied.