P.R. Laws tit. 26, § 4012
(1) Any court of Puerto Rico before which any action or proceeding in which the insurer is a party, or is obliged to defend a party, is pending when a rehabilitation order against the insurer is entered, shall stay the action or proceeding for ninety (90) days or for such additional time as may be necessary for the rehabilitator to obtain proper representation and prepare for ulterior proceedings. The rehabilitator shall take whichever action he/she may deem necessary in respect to the pending litigation in the interests of justice and for the protection of creditors, policyholders, and the public. The rehabilitator shall immediately consider all litigation pending outside of Puerto Rico and shall whenever necessary petition stays from the courts having jurisdiction over such litigation so as to protect the estate of the insurer.
(2) No statute of limitation or defense of laches shall run with respect to any action by or against the insurer between the date of filing a petition for the appointment of a rehabilitator for the insurer and the order granting or denying such a petition. Any action by or against the insurer that might have been commenced when the petition was filed may be commenced within ninety (90) days after the rehabilitation order is issued or the petition is denied.
(3) Any guaranty association or foreign guaranty association covering life or disability insurance shall have standing to appear in any court proceeding concerning the rehabilitation of a life or disability insurer if such an association would have to act or might become liable to act as a result of the rehabilitation.
History —Ins. Code, added as § 40.120 on Aug. 17, 1991, No. 72, § 1; Dec. 14, 2007, No. 206, § 13.