What do you do as a claimant if the insured’s liability insurance carrier declines to defend and cover your claim and you need this insurance to pay your claim? One thought to consider is entering into a Coblentz agreement with the insured. Under this agreement:
(1) The insured agrees to a consent judgment entered against it. The judgment establishes the liability of the insured as it pertains to your claim.
(2) The insured assigns its rights under it liability policy to you so that you can sue the insurer directly.
(3) In consideration for (1) and (2), you agree not to pursue the consent judgment against the insured. You are waiving your rights to pursue the insured directly in exchange for the ability to pursue their insurance carrier for coverage.
Please contact David Adelstein at firstname.lastname@example.org or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.