US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 36
                        INSURANCE GUARANTY ASSOCIATION
    41-3618.  STAY OF COURT PROCEEDINGS FOR INSOLVENCY -- SETTING ASIDE
JUDGMENT AGAINST INSOLVENT INSURER. All proceedings in which the insolvent
insurer is a party or is obligated to defend a party in any court in this
state shall, subject to written waiver by the association in specific cases
involving covered claims, be stayed until the last day fixed by the court for
the filing of claims and such additional time thereafter as may be determined
by the court from the date the insolvency is determined or an ancillary
proceeding is instituted in the state, whichever is later, to permit proper
defense by the association of all pending causes of action. As to any covered
claims arising from a judgment under any decision, verdict or findings based
on the default of the insolvent insurer or its failure to defend an insured,
the association either on its own behalf or on behalf of such insured may
apply to have such judgment, order, decision, verdict or finding set aside by
the same court or administrator that made such judgment, order, decision,
verdict or finding and shall be permitted to defend against such claim on the
merits. The liquidator, receiver, or statutory successor of an insolvent
insurer covered by this act shall permit access by the board or its authorized
representative to such of the insolvent insurer's records which are necessary
for the board in carrying out its functions under this act with regard to
covered claims. In addition, the liquidator, receiver, or statutory successor
shall provide the board or its representative with copies of such records upon
the request by the board and at the expense of the board.