§ 27-34-17 - Stay of proceedings. - Rhode Island Statutes

SECTION 27-34-17

   § 27-34-17  Stay of proceedings. – All proceedings in which the insolvent insurer is a party or is obligated todefend a party in any court in this state shall be stayed for six (6) monthsand any additional time that may be determined by the court from the date theinsolvency is determined or an ancillary proceeding is instituted in thisstate, whichever is later, to permit proper defense by the fund of all pendingcauses of action. As to any covered claims arising from a judgment under anydecision, verdict, or finding, based on the default of the insolvent insurer orits failure to defend an insured, the fund either on its own behalf or onbehalf of the 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 finding, and shall be permitted to defend againstthe claim on the merits. The liquidator, receiver, or statutory successor of aninsolvent insurer covered by this chapter shall permit access by the board orits authorized representative to any of the insolvent insurer's records thatare necessary for the board in carrying out its functions under this chapterwith regard to covered claims. In addition, the liquidator, receiver, orstatutory successor shall provide the board or its representative with copiesof the records upon the request by the board and at the expense of the board.