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 up to six 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 such judgment, order, or administrator that made such judgment, order, decision, verdict, or finding and shall be permitted to defend such claim on the merits.
The liquidator, receiver, or statutory successor of an insolvent insurer covered by this chapter shall permit access by the board or its authorized representative to such of the insolvent insurer's records which are necessary for the board in carrying out its functions under this chapter with regard to covered claims. In addition, the liquidator, receiver, or statutory successor shall provide the board or its representative with copies of such records upon the request by the board and at the expense of the board.
Structure Code of Alabama
Chapter 42 - Insurance Guaranty Association.
Section 27-42-1 - Short Title.
Section 27-42-2 - Purpose of Chapter.
Section 27-42-3 - Applicability of Chapter.
Section 27-42-4 - Construction of Chapter.
Section 27-42-5 - Definitions.
Section 27-42-6 - Association Created; Member Insurers; Accounts.
Section 27-42-7 - Board of Directors; Selection; Vacancies; Expenses.
Section 27-42-8 - Powers and Duties.
Section 27-42-8.1 - Maximum Assessment.
Section 27-42-9 - Plan of Operation.
Section 27-42-10 - Duties and Powers of the Commissioner; Judicial Review.
Section 27-42-11 - Settlement and Payment of Claims; Recovery.
Section 27-42-12 - Exhaustion of Rights; Nonduplication of Recovery.
Section 27-42-13 - Prevention of Insolvencies; Examinations of Insurers; Reports.
Section 27-42-14 - Examination of the Association; Financial Report.
Section 27-42-15 - Tax Exemption.
Section 27-42-16 - Credits for Assessments Paid; Disposition of Refunds Previously Offset.
Section 27-42-18 - Stay of Proceedings; Access of Board to Records of Insurers.