§ 58-48-85. Stay of proceedings; reopening of default judgments.
§ 58‑48‑85. Stayof proceedings; reopening of default judgments.
All proceedings in which theinsolvent insurer is a party or is obligated to defend a party in any court orbefore any administrative agency or the North Carolina Industrial Commissionshall be stayed automatically for 120 days and such additional time thereafteras may be determined by the court from the date the insolvency is determined orany ancillary proceedings are initiated in this State, whichever is later, topermit proper defense by the Association of all pending causes of action. Anyparty to any proceeding which is stayed pursuant to this section shall have theright, upon application and notice, to seek a vacation or modification of suchstay. Any covered claims arising from any judgment under any decision, verdictor finding based on the default of the insolvent insurer or its failure todefend an insured, shall, upon application and notice by the Association bevacated and set aside by the same court in which such judgment, order,decision, verdict, or finding is entered and the Association either on its ownbehalf or on behalf of any insured or an insolvent insurer, shall be permittedto defend against such claim on the merits. Any party who has obtained any suchjudgment or order shall have the right, upon application and notice, to havethe judgment or order restored if within 90 days following the entry of thejudgment or order the Association has not notified such party and the courtthat it intends to defend the matter on the merits. (1971, c. 670, s. 1; 1989, c.206, s. 8; 2003‑167, s. 4.)