(1) When the division is served a petition under Section 61-2f-506, the division may:
(a) file an answer to the petition in the court;
(b) initiate a review proceeding conducted by the division; or
(c) appear in any proceeding in the name of the defendant to the action or on behalf of the fund.
(2) The division may settle a claim against the fund if:
(a) the person who brings the claim requests a settlement; and
(b) the court in which the petition is filed approves the settlement.