N.Y. Ins. Law § 7717

§ 7717. Stay of proceedings; reopening default judgments. All\nproceedings in which the impaired or insolvent insurer is a party in any\ncourt in this state shall be stayed sixty days from the date an order of\nliquidation, rehabilitation, or conservation is final to permit proper\nlegal action by the corporation on any matters germane to its powers or\nduties. As to judgment under any decision, order, verdict or finding\nbased on default the corporation may apply to have such judgment set\naside by the same court that made such judgment and, if such application\nis granted in the court's discretion, the corporation shall be permitted\nto defend against such suit on the merits. The provisions of this\nsection shall be in addition to any other provision provided by law.\n