N.Y. Ins. Law § 5214

§ 5214. Default and consent judgments. (a) No claim shall be allowed\nand ordered to be paid by the corporation if the court finds upon the\nhearing for the allowance of the claim that it is founded upon a\njudgment which was entered by default or consent of the defendant.\n (b) When the corporation receives notice of intention to enter\njudgment and intention to file a claim against the corporation and the\ntime allowed for filing an answer has expired, the corporation shall be\ngranted a reasonable time after the receipt of notice by it to answer\nand to defend the action.\n (c) If upon a hearing for the allowance of any claim against the\ncorporation the court finds that the judgment was entered by default or\nwith the consent or agreement of the defendant it shall order that the\njudgment insofar as it affects the corporation be set aside and the\ncorporation permitted to proceed in the action as provided above.\n