Section 3775. Intervention in Formal Proceedings

(a) Intervention. A person not named as a respondent in a formal proceeding who has a direct and substantial interest in the administration of the insurer’s business or estate may request leave of court to intervene.

(b) Application to intervene. A request for leave to intervene, generally or for a limited purpose, shall be by application and answer, if any, in accordance with Rule 123 (application for relief). The application shall contain a concise statement of the interest of the applicant and the purposes for which the applicant seeks to intervene. A copy of the document to be filed if the Court allows intervention shall be attached to the application.

(c) Action on application. Intervention in a formal proceeding shall be allowed if the proven or admitted allegations of the application establish a sufficient interest in the proceedings, unless the interest of the applicant is already adequately represented or intervention will unduly delay or prejudice the adjudication of the rights of the parties.

(1) General intervention. When the applicant demonstrates an ongoing interest in the administration of the insurer’s business or estate, the Court may grant the applicant general intervention. The general intervenor shall remain on the master service list until the formal proceeding is completed.

(2) Limited intervention. When the applicant’s interest involves a discrete controversy relating to the administration of the insurer’s business or estate, the Court may grant the applicant limited intervention to participate as a party in the discrete controversy. The limited intervenor shall not be placed upon the master service list unless the Court orders otherwise.

(d) Upon grant of an application to intervene, the document attached to the application to intervene, that is, the application for relief under Rule 3776 or complaint under Rule 3783, shall be deemed filed, and the Court shall direct the time for filing a response.

Official Note

General or limited intervention—Intervention, whether general or limited in scope, may be granted for purposes such as, but not limited to:

(1) Oppose a petition by the Commissioner for an order of liquidation or rehabilitation;

(2) Oppose an application by the receiver for an order relating to the administration of the insurer’s business or of estate;

(3) Object to a report by the receiver;

(4) Seek relief from any order;

(5) Assert any rights or interest afforded to the person by Article V and for which neither Article V nor prior orders of the Court provide an avenue for redress; or

(6) Compel the liquidator to issue a notice of determination if the liquidator has failed to do so in conformity with Rule 3781 (claim procedure).

Relief from stay—Intervention is a prerequisite to filing an application for relief from the stay of actions against the insurer that is imposed under Section 526, 40 P. S. § 221.26.

The provisions of this Rule 3775 adopted June 8, 2012, effective July 30, 2012, 42 Pa.B. 3569.