§ 26-31-117 — Stay of proceedings against insolvent insurer; setting aside judgment

All proceedings in which the insolvent insurer is a party or is
obligated to defend a party in any court in this state shall be
stayed for sixty (60) days from the date the insolvency is
determined 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 the insured may apply to have the judgment, order, decision,
verdict or finding set aside by the same court or administrator
making the judgment, order, decision, verdict or finding and may
defend against the claim on the merits.