N.Y. Insurance Law § 5214: Default and consent judgments

§ 5214. Default and consent judgments. (a) No claim shall be allowed

and ordered to be paid by the corporation if the court finds upon the

hearing for the allowance of the claim that it is founded upon a

judgment which was entered by default or consent of the defendant.

(b) When the corporation receives notice of intention to enter

judgment and intention to file a claim against the corporation and the

time allowed for filing an answer has expired, the corporation shall be

granted a reasonable time after the receipt of notice by it to answer

and to defend the action.

(c) If upon a hearing for the allowance of any claim against the

corporation the court finds that the judgment was entered by default or

with the consent or agreement of the defendant it shall order that the

judgment insofar as it affects the corporation be set aside and the

corporation permitted to proceed in the action as provided above.