Defendant transacts the business of insurance in the Commonwealth of. Pennsylvania and within Allegheny County.When all four insurers denied coverage, Allegheny sued. An injured party may assert a counterclaim for declaratory judgment directly against the tortfeasor's insurer while an underlying tort claim is pending. §7540 the injured party in the underlying lawsuit must be joined in a declaratory judgment between an insurer and insured on the issue of coverage. Introduction. Several thorny legal problems beset the liability insurer with respect to its duty to defend the insured against suits, claims and proceedings. An action for declaratory judgment is procedural in nature and purpose. The Declaratory Judgment Act, 28 U.S.C. § 2201(a), provides that in "a case of actual controversy within its jurisdiction . . . Any court of the United States . Underwriting files are generally not kept in the claims department.