2025 Session Last amended: 1993 session

§ 61B.32 — Stay of Proceedings; Reopening Default Judgments

Plain-Language Summary

This section pauses all court cases involving an insolvent insurer for 60 days after a liquidation, rehabilitation, or conservation order becomes final. This gives the guaranty association time to take action. The association can also ask a court to set aside any default judgments entered against the insolvent insurer and defend those cases on the merits.

61B.32 STAY OF PROCEEDINGS; REOPENING DEFAULT JUDGMENTS.

All proceedings in which the insolvent insurer is a party in a court in this state must be stayed 60 days from the date an order of liquidation, rehabilitation, or conservation is final to permit proper legal action by the association on matters germane to its powers or duties. As to judgment under a decision, order, verdict, or finding based on default, the association may apply to have the judgment set aside by the same court that made the judgment and may defend against the suit on the merits.

History:

1993 c 319 s 17

History: History:

  1993 c 319 s 17

Practical Notes

The 60-day stay prevents a rush to judgment against a failing insurer before the guaranty association can step in. If a default judgment was entered because the insolvent insurer failed to respond to a lawsuit, the association can reopen that case and present a defense. This protects the association’s funds from potentially inflated or uncontested claims.

Source: Minnesota Office of the Revisor of Statutes