Federal courts are reluctant to consider novel insurance coverage issues. To establish federal jurisdiction in a declaratory judgment action, two conditions must be satisfied.First, is the constitutional inquiry. A declaratory judgment action is a type of lawsuit that allows businesses and individuals to seek a court's conclusive ruling on an uncertain legal issue. 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. The plain language of the statute seems to allow invoking the Act in a will contest since the validity of the testamentary instrument is in. Typically, the outcome of a declaratory judgment action rests solely on contractual language in the policy. Whether an insurance carrier's liability for benefits under the UIM policy may be established in a declaratory judgment action. There are many ways to bring an issue before the court in a family law matter. September 1, 2007. Sec. 541.053.