New York Insurance Code § 5215

Collusive judgments
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§ 5215. Collusive judgments. No claim against the corporation shall be\nallowed if the court finds, upon the hearing for the allowance of the\nclaim, that the judgment upon which the claim is founded was obtained by\nfraud, or by collusion of the plaintiff and of any defendant in the\naction, relating to any matter affecting the cause of action upon which\nthe judgment is founded or the amount of damages assessed therein.\n

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