All proceedings involving covered claims in which the insolvent insurer is a party or is obligated to defend a party in any court in this State must be stayed ninety days from the date insolvency is determined to permit proper defense by the association. The court may stay the proceedings for a longer period of time if the court finds the additional time is necessary to permit proper defense by the association. As to any judgment, decision, order, verdict, or finding based on the insurer's default or failure to defend the insured, the association may apply to have the judgment, decision, order, verdict, or finding set aside by the same court or administrator which made it and must be permitted to defend against the claim on its merits.
HISTORY: Former 1976 Code Section 38-31-160 [1962 Code Section 37-310; 1953 (48) 493] recodified as Section 38-65-80 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-19-160 [1962 Code Section 37-835; 1971 (57) 1001] recodified as Section 38-31-160 by 1987 Act No. 155, Section 1; 1988 Act No. 402, Section 8; 1993 Act No. 181, Section 632.
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