Ask a Lawyer and Get Answers to Your Legal Questions
There are some major issues here. First off take a look at your policy to determine if the insurance company has to cover this. I presume they do have an obligation. You need to deny their motion and assert your counterclaim for breach of contract. They are responsible for that default judgment. I would strongly suggest getting an attorney. Contact your local or state bar association for referrals to attorneys who specialize in cases against insurance companies.