CODE OF VIRGINIA

STAY OF PROCEEDINGS AGAINST INSOLVENT INSURER; SETTING ASIDE JUDGMENT, ETC.;
ACCESS TO RECORDS (§ 38.2-1616)

A. All proceedings in which the insolvent insurer is a party or is obligated to
defend a party in any court in this Commonwealth shall be stayed for up to six
months and such additional time thereafter as may be determined by the court
from the date the insolvency is determined or an ancillary proceeding is
instituted in the Commonwealth, whichever is later, to permit proper defense by
the Association of all pending causes of action. For 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 the judgment, order, decision, verdict or finding and
shall be permitted to defend against the claim on the merits.

B. The liquidator, receiver, or statutory successor of an insolvent insurer
covered by this chapter shall permit access by the board or its authorized
representatives to such of the insolvent insurer’s records which are
necessary for the board in carrying out its functions under this chapter with
regard to covered claims. In addition, the liquidator, receiver or statutory
successor shall provide the board or its representative with copies of such
records upon the request by the board and at the expense of the board.

HISTORY: 1970, c. 766, § 38.1-773; 1986, c. 562; 1987, c. 529.