Does a "no action" clause in a personal injury claim apply to an insurer?
California, United States of America
The following excerpt is from Earth Elements, Inc. v. National American Ins. Co., 41 Cal.App.4th 110, 48 Cal.Rptr.2d 399 (Cal. App. 1995):
A "no action" clause is intended to preclude actions by the injured third party against the insurer until damages have been fixed by a final judgment or agreed settlement. Such clauses are to prevent collusive settlements between the insured and the claimant before a final judgment. (Rose v. Royal Ins. Co. (1991) 2 Cal.App.4th 709, 716, 3 Cal.Rptr.2d 483.)
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