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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

101

:
INSURANCE COMPANIES GENERALLY






Subchapter

009
:
PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION










 

§

3625. Stay of proceedings; reopening of default judgment

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 up to six months and such

additional time thereafter as may be determined by the court from the date on

which the insolvency is declared 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 such judgment, order,

decision, verdict or finding set aside by the same court or administrator that

made such judgment, order, decision, verdict or finding and shall be permitted

to defend against such claim on the merits. (1969, No. 279 (Adj. Sess.), § 17;

amended 1979, No. 18, § 17.)