(a) 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 120 days from the date the insolvency is determined, and for such time thereafter as may be determined by the court, to permit a proper defense by the Association of all pending causes of actions. 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, decision, verdict or finding set aside by the same court or administrator that made such judgment, order, decision, verdict or finding and shall be permitted to defend against such claim on the merits.
(b) The liquidator, receiver, or statutory successor of an insolvent insurer covered by this title 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. The liquidator, receiver, or statutory successor shall provide the board of directors or its representative with copies of such records upon request by the board and at the expense of the board.
Structure Delaware Code
Chapter 42. DELAWARE INSURANCE GUARANTY ASSOCIATION ACT
§ 4206. Creation of the Association.
§ 4208. Powers and duties of the Association.
§ 4210. Duties and powers of the Commissioner.
§ 4211. Effect of paid claims.
§ 4212. Exhaustion of other coverage.
§ 4213. Prevention of insolvencies.
§ 4214. Examination of the Association.
§ 4216. Recognition of assessments in rates.
§ 4218. Stay of proceedings; reopening of default judgments.
§ 4219. Recoupment of assessment.