Introduced Version, House Bill 1076 States that only a named insured or someone seeking insured status can bring an action for declaration of coverage prior to judgment being entered on the underlying claim.
Can’t say I like this one very much. This would apparently stop someone who has been injured by a tortfeasor from obtaining a determination of whether the tortfeasor has any insurance coverage. So, let’s say someone blows a red light, T-bones your car, and causes you a whole lot of injuries. Maybe the driver’s insurer says that the latest premium was received a day or two late and there’s no coverage. The driver says he paid it on time. The insurer defends the driver under a reservation of rights. So, to obtain your judgment, you have to fight through the insurer-paid attorneys, but at the end of the day, there might not be any money to pay your judgment. Knowing whether your judgment is worthless or not could very well affect how much you put into your case, paying experts, taking depositions, etc.
Contrast that with a potentially much cheaper action against the insurer for determination of the question of whether they cover the driver or not. You lose that one, and you probably cut your losses, figuring a judgment against the driver is worthless. You win that one and you expend whatever resources you can afford and your injuries justify.
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