KRS 304.42-180: Court proceedings to be stayed.

All proceedings in which the insolvent insurer is a party in any court in this state shall be

stayed sixty (60) days from the date an order of liquidation, rehabilitation, or conservation

is final to permit proper legal action by the association on any mat ters germane to its

powers or duties. As to judgment under any decision, order, verdict, or finding based on

default the association may apply to have such judgment set aside by the same court that

made such judgment and shall be permitted to defend against such suit on the merits.