Declaration sought to determine the insurance issues and appropriate relief. A declaratory judgment is a court-issued judgment that defines and outlines the rights and obligations of each party in a contract.The declaratory judgment action would settle the controversy and would be useful in clarifying the legal relations. The declaratory judgment would clarify the parties' rights and obligations under the insurance policy. 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. For automotive insurance disputes, the existing policy is a contract. A declaratory judgment does not determine whether you are entitled to damagesit simply assesses your right to insurance coverage. In the thirdparty context, insurer declaratory judgment actions can result in a unique predicament for an insured. Question 4: Answer: Does governmental immunity bar declaratory judgment actions? 1(u) of Senate Bill 382 is unconstitutional and therefore void and of no effect.