(a) All proceedings in which the insolvent insurer is party or is obligated to defend
a party in any court in this Commonwealth shall be stayed for ninety (90) days from
the date the insolvency is determined to permit proper defense by the association
of all pending causes of action.
(b) 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 that made such judgment, order, decision, verdict or finding and shall
be permitted to defend against such claim on the merits.
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