GEORGIA COURT OF APPEALS FINDS THAT AN EXCESS INSURER IS NOT SUBJECT TO SUIT UNDER THE DIRECT ACTION STATUTE
Posted by Susan J. Levy
Generally, a party may not bring a direct action against another party’s liability insurer. Hartford Ins. Co. v. Henderson & Son, 258 Ga. 493 (1988). In that case, the Georgia Supreme Court held that “the general rule is that because there is no privity of contract, a party may not bring a direct action against the liability insurer of the party who allegedly caused the damage unless there was an unsatisfied judgment against the insured or it is specifically permitted either by statute or provision in the policy.”