Impaired or insolvent insurers: Stay of proceedings; reopening of default judgments. All proceedings in which the impaired or insolvent insurer is a party in any court in this state must be stayed for 60 days from the date an order of liquidation, rehabilitation or conservation is final to permit proper legal action by the Association on any matters germane to its powers or duties. If a judgment has been entered under any decision, order, verdict or finding based on default, the Association may apply to have the judgment set aside by the same court that entered the judgment and is entitled to defend against the suit on the merits.
Last modified: February 27, 2006