§ 27-6-8-17 — Stay of proceedings; reopening of default judgments

(Stay of Proceedings; Reopening of Default
Judgments) All proceedings in which the insolvent insurer is a party or
is obligated to defend a party in court in this state shall be stayed for up
to six (6) months 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 finding 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 the judgment,
order, decision, verdict or finding set aside by the same court or
administrator that made the judgment, order, decision, verdict or
findings and shall be permitted to defend against the claim on the
merits.
Formerly: Acts 1971, P.L.390, SEC.1; Acts 1973, P.L.279,
SEC.2.