Legal Definitions - direct-action statute

A direct-action statute is a law that allows an injured party to sue an insurance company directly instead of suing the person who caused the injury. This means that the injured party can skip suing the person who caused the harm and go straight to the insurance company.

For example, in Rhode Island, if someone is injured and cannot serve the person who caused the injury with legal papers, they can still sue the insurance company directly under the state's direct-action statute. Other states that have direct-action statutes include Alabama, Arkansas, Louisiana, Minnesota, New York, Pennsylvania, and Wisconsin.

These laws are meant to make it easier for injured parties to get compensation for their injuries. Instead of having to go through a long legal process to sue the person who caused the harm, they can go straight to the insurance company and get the money they need to pay for medical bills and other expenses.