(1) If a member insurer is an insolvent insurer, the Arkansas Life and Health Insurance Guaranty Association, in its discretion, shall: Do both of the following: Guarantee, assume, reissue, or reinsure, or cause to be guaranteed, assumed, reissued, or reinsured, the policies or contracts of the insolvent insurer or assure payment of the contractual obligations of the insolvent insurer; and
(2) Provide the moneys, pledges, loans, notes, guarantees, or other means as are reasonably necessary to discharge such duties; or
(3) Provide benefits and coverages in accordance with § 23-96-113.
(4) 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 matters germane to its powers or duties.
(5) As to judgment under any 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 shall be permitted to defend against the suit on the merits.