(a) All proceedings in which an insolvent insurer is a party or is obligated to defend an insured as a party in any court in this state shall be stayed for up to six months and for such additional time thereafter as may be determined by the court from the date of declaration of insolvency or from the time an ancillary proceeding is instituted in the state, whichever is later, to permit proper defense by said association of all pending causes of action in the case. Whenever any covered claims arise from a judgment under any decision, verdict or finding based on the default of an insolvent insurer or based on such insolvent insurer's failure to defend an insured, said 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 or administrator that made such judgment, order, decision, verdict or finding and said association may defend against any such claim on the merits of the case.
(b) The liquidator, receiver or statutory successor of an insolvent insurer covered by sections 38a-836 to 38a-853, inclusive, shall permit access by the board or its authorized representative to such insolvent insurer's records which the board determines are necessary for the board to carry out its functions under said sections 38a-836 to 38a-853, inclusive, with regard to covered claims. The liquidator, receiver or statutory successor shall provide the board or its representative with copies of such records upon the request of the board.
(1971, P.A. 466, S. 16; P.A. 81-83, S. 6; P.A. 86-403, S. 80, 132; P.A. 97-125, S. 8, 9.)
History: P.A. 81-83 required that proceedings be stayed for up to six months and for additional time as determined by the court, eliminating requirement of stay of 60 days from insolvency determination; P.A. 86-403 made technical change; Sec. 38-288 transferred to Sec. 38a-851 in 1991; P.A. 97-125 designated existing provisions as Subsec. (a) and added Subsec. (b) re access to insolvent insurer's records, effective July 1, 1997.
Notes of Decisions
Cited in
4
cases, 2005–2014 · leading case:
Robinson v. Gailno, 880 A.2d 127 (Conn. 2005).
Robinson v. Gailno, 880 A.2d 127 (Conn. 2005).
· cites it 2× “8 We note that shortly before the trial commenced, the trial court denied the association’s motion to intervene pursuant to General Statutes § 38a-851. The association has, however, appeared in this appeal as amicus curiae.”
Connecticut Ins. Guar. Ass'n v. Drown, 37 A.3d 820 (Conn. App. Ct. 2012).
· cites it 2× “Specifically, the association argues that the court improperly (1) concluded that the underlying claims were “covered claims” even though there was no judgment in the underlying action, as required by the policy, (2) held that it failed to comply with General Statutes § 38a-851…”
Connecticut Ins. Guar. Assn. v. Drown, No. SC18975 (Conn. Oct. 21, 2014).
· cites it 8× “Even assuming, without deciding, that the default and ultimate settlement agreement between the Drowns and Health Specialists constitute a ‘‘judgment’’ subject to reopening under General Statutes § 38a-851 (a),11 which is Connecticut’s counterpart of the statute at issue in…”
Connecticut Ins. Guar. Ass'n v. Drown, 37 A.3d 820 (Conn. App. Ct. 2012).
· cites it 2× “Specifically, the association argues that the court improperly (1) concluded that the underlying claims were "covered claims" even though there was no judgment in the underlying action, as required by the policy, (2) held that it failed to comply with General Statutes § 38a-851…”
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