Application for insurance policy (containing insured's representations). Courts have traditionally held that an insurance company has no right to intervene in the liability action against the insured to seek a coverage determination.On January 22, 2009, the Court lifted the stay in this declaratory judgment action. Lighthouse Casualty was relying on. Cooks' testimony of what occurred as its basis for denying Rush and Ross's insurance claim. There is no need for a cross-claim here in this case. The issues will be decided in the declaratory judgment part of the case. If you have a dispute with your insurance company, the most common form of legal relief is a Declaratory Judgment action. " Standard Mutual Insurance Co. v. In 2006-2007, she served as chair of the.