Sec. 17. (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.
Structure Indiana Code
Article 6. Reinsurance; Interinsurance; Reciprocal Insurance
Chapter 8. Property and Casualty Insurance and Guaranty Association Law
27-6-8-0.1. Application of Certain Amendments to Chapter
27-6-8-5. Creation of the Association
27-6-8-7. Powers and Duties of the Association
27-6-8-9. Powers and Duties of Commissioner
27-6-8-10. Effect of Paid Claims
27-6-8-11. Nonduplication of Recovery
27-6-8-11.5. High Net Worth Insureds; Financial Information
27-6-8-12. Prevention of Insolvencies
27-6-8-13. Examination of the Association
27-6-8-15. Recoupment of Assessments; Tax Credits
27-6-8-17. Stay of Proceedings; Reopening of Default Judgments