Direct-Action Statute Law and Legal Definition

Direct-Action Statute is a statute that grants an injured party direct standing to sue an insurer instead of the insured tortfeasor. Under Rhode Island's direct-action statute, for example, an injured party may bring a direct action against an insurer when good-faith efforts to serve process on the insured are unsuccessful. These statutes exist in several states, including Alabama, Arkansas, Louisiana, Minnesota, New York, Pennsylvania, and Wisconsin.