New York Consolidated Laws, Insurance Law - ISC § 7610. Defense of claims

(a) The superintendent may, in his discretion, designate or appoint a duly authorized representative to appear before any court or other body or official having jurisdiction and defend any action or proceeding against principals or assureds on insurance policies or bonds issued to them where the insurer has become insolvent or unable to meet its insurance obligations.  The superintendent shall have, as of the date of such insolvency or inability to meet its insurance obligations, only the rights which the insurer would have had if not insolvent or unable to meet its insurance obligations.

(b) For the purposes of this section, the superintendent shall have power to employ such counsel, clerks and assistants as may be necessary.