A proceeding in which an insolvent insurer is a party in a court in this state shall be stayed one hundred eighty days from the date an order of liquidation, rehabilitation or conservation is final to permit proper legal action by the association on matters germane to its powers or duties. As to a judgment under a decision, order, verdict or finding based on default, the association may apply to have the judgment set aside by the same court that made the judgment and shall be permitted to defend against the suit on the merits.
History: Laws 1984, ch. 127, § 765; 2012, ch. 9, § 19.
The 2012 amendment, effective July 1, 2012, expanded the time period of the stay and in the first sentence, after "shall be stayed", deleted "sixty (60)" and added "one hundred eighty".
Structure New Mexico Statutes
Article 42 - Life and Health Insurance Guaranty Association
Section 59A-42-1 - Short title.
Section 59A-42-3 - Definitions.
Section 59A-42-4 - Coverage; limitations.
Section 59A-42-5 - Organization of association; participation.
Section 59A-42-6 - Board of directors.
Section 59A-42-7 - Powers and duties of the association.
Section 59A-42-8 - Assessments.
Section 59A-42-9 - Plan of operation.
Section 59A-42-10 - Duties and powers of the superintendent.
Section 59A-42-11 - Prevention of insolvencies.
Section 59A-42-13 - Miscellaneous provisions.
Section 59A-42-14 - Examination of association; annual report.
Section 59A-42-16 - Stay of proceedings; reopening default judgments.
Section 59A-42-17 - Prohibited advertisement; notice to policy owners.