Except for specific cases involving covered claims that are subject to waiver by the association, 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 until the last day fixed by the court for the filing of claims to permit proper defense by the association of all pending causes of action.
Terms Used In Utah Code 31A-28-218
Administrator: means the same as that term is defined in Subsection (182). See Utah Code 31A-1-301
Covered claim: means an unpaid claim, including an unpaid claim under a personal lines policy for unearned premiums submitted by a claimant, if:
(i)
the claim arises out of the coverage;
(ii)
the claim is within the coverage;
(iii)
the claim is not in excess of the applicable limits of an insurance policy to which this part applies;
(iv)
the insurer who issued the policy becomes an insolvent insurer; and
(v)
(A)
the claimant or insured is a resident of this state at the time of the insured event; or
(B)
the claim is a first-party claim for damage to property that is permanently located in this state. See Utah Code 31A-28-203
Filing: when used as a noun, means an item required to be filed with the department including:
an insurer is unable to pay the insurer's obligations as the obligations are due;
(b)
an insurer's total adjusted capital is less than the insurer's mandatory control level RBC under Subsection 31A-17-601(8)(c); or
(c)
an insurer's admitted assets are less than the insurer's liabilities. See Utah Code 31A-1-301
Insolvent insurer: means a member insurer that is placed under an order of liquidation by a court of competent jurisdiction with a finding of insolvency. See Utah Code 31A-28-203
Insured: means a person to whom or for whose benefit an insurer makes a promise in an insurance policy and includes:
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
Verdict: The decision of a petit jury or a judge.
(2)
For any covered claim arising from a judgment under any decision, order, 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:
(a)
may apply to have the judgment set aside by the issuing court or administrator; and
(b)
shall be permitted to defend against the claim on the merits.
