38.2-1616 - Stay of proceedings against insolvent insurer; setting aside judgment, etc.; access to records. - Virginia Statutes

§ 38.2-1616. Stay of proceedings against insolvent insurer; setting asidejudgment, etc.; access to records.

A. All proceedings in which the insolvent insurer is a party or is obligatedto defend a party in any court in this Commonwealth shall be stayed for up tosix months and such additional time thereafter as may be determined by thecourt from the date the insolvency is determined or an ancillary proceedingis instituted in the Commonwealth, whichever is later, to permit properdefense by the Association of all pending causes of action. For any coveredclaims arising from a judgment under any decision, verdict or finding basedon 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 mayapply to have the judgment, order, decision, verdict or finding set aside bythe same court or administrator that made the judgment, order, decision,verdict or finding and shall be permitted to defend against the claim on themerits.

B. The liquidator, receiver, or statutory successor of an insolvent insurercovered by this chapter shall permit access by the board or its authorizedrepresentatives to such of the insolvent insurer's records which arenecessary for the board in carrying out its functions under this chapter withregard to covered claims. In addition, the liquidator, receiver or statutorysuccessor shall provide the board or its representative with copies of suchrecords upon the request by the board and at the expense of the board.

(1970, c. 766, § 38.1-773; 1986, c. 562; 1987, c. 529.)