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 not to exceed six (6) months 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 that made it and may defend against the claim on the merits.
History: Laws 1984, ch. 127, ยง 783.
Structure New Mexico Statutes
Article 43 - Property and Casualty Insurance Guaranty Fund
Section 59A-43-1 - Short title.
Section 59A-43-4 - Definitions.
Section 59A-43-5 - Organization of association.
Section 59A-43-6 - Board of directors.
Section 59A-43-7 - Powers and duties of the association.
Section 59A-43-8 - Plan of operation.
Section 59A-43-9 - Duties and powers of superintendent.
Section 59A-43-10 - Effect of paid claims.
Section 59A-43-11 - Nonduplication of recovery.
Section 59A-43-12 - Prevention of insolvencies.
Section 59A-43-13 - Examination of association; financial reports.
Section 59A-43-15 - Recognition of assessment in rates.
Section 59A-43-17 - Stay of proceedings; reopening of default judgments.