Chapter 11, G. The Automatic Stay and Direct-Action States

JurisdictionUnited States

G. The Automatic Stay and Direct-Action States

In a direct-action state, the claimant is able to file a lawsuit directly against the insurer without naming the insured as a party. An action against the insurer alone would not ordinarily violate the automatic stay. However, the automatic stay is two-fold: It operates to stay actions against property of the estate and the person of the debtor. If the proceeds of the...

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