§33-26-18 Stay of proceedings; reopening of default judgments.
§33-26-18. Stay of proceedings; reopening of default judgments.
All proceedings in which the insolvent insurer is a party or obligated to defend a party in any court in this state shall be stayed for six months from the date the proof of claim provided for in section eighteen, article ten of this chapter is filed with the receiver to permit proper defense by the association of all pending causes of action. As to any covered claims arising from a judgment under any order, decision, verdict or finding based on the default of the insolvent insurer or its wrongful 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.