Direct General Insurance v. Drawdy

Phipps, Judge.

May an automobile insurer bring a declaratory judgment action where it has informed its insured that its policy provides no coverage for a vehicular collision, but is nonetheless providing a defense under reservation of rights to the insured in a suit by the injured party seeking damages arising from the collision? That is the primary question for decision in this case. We answer the question in the affirmative and, therefore, reverse the trial court’s dismissal , of the insurer’s complaint. The trial court’s denial of the insurer’s motion for summary judgment is, however,…