New York Consolidated Laws, Insurance Law - ISC § 5209. Investigation and defense of claims

(a) The corporation shall provide for the investigation of accidents and actions governed by this article it deems necessary.

(b) The corporation may through counsel appear and defend in any action on its own behalf and on behalf of a defendant and take any other steps it deems appropriate including any appropriate method of review.  All such acts shall be deemed to be the acts of the corporation and the defendant.

(c) Nothing in this article shall deprive a defendant of the right also to employ counsel and defend the action.

(d) In any case in which the corporation has assumed the defense of any action under this article, the defendant shall cooperate with the corporation in the defense of the action.  In the event of the defendant's failure to do so, the corporation may apply to the court for an order directing cooperation.