Declaration sought to determine the insurance issues and appropriate relief. Both policyholders and insurance companies can use declaratory judgment actions to settle their disputes over coverage.Get a consultation with an attorney to discuss how we can assist you in utilizing declaratory judgment actions to resolve your insurance coverage disputes. A declaratory judgment can make sure the dispute is being heard in the forum with the best potential outcome for the insurance company. So your client wants you to file a declaratory judgment action, but you are unsure of whether the applicable statute of limitations has expired. Actions seeking a declaratory judgment regarding insurance coverage with respect to a tort action shall be assigned at random to a General Assignment Part. Novel Insurance Coverage Issue? File a Declaratory Judgment Action in Federal Court, Right? 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. This is an action for declaratory judgment pursuant to CPLR 3001. 2.