DIRECT-ACTION STATUTE
direct-action statute.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, D
Arkansas, Louisiana, Minnesota, New York, Pennsylvania, and Wisconsin. [Cases: Insurance
3542. C.J.S. Insurance §§ 1407–1413, 1523, 1642.] [Blacks Law 8th]