Purpose of a declaratory judgment action is to give parties guidance concerning their rights and obligations with respect to 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.Upon information and belief, LZ Insurance Companies are authorized to transact business and have transacted business in the State of New York. The insured can seek a stay or dismissal of an insurer's declaratory judgment action on a number of procedural, jurisdictional, and factual grounds. 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. 206.6 Contents of a claim or a notice of intention to file a claim; action for declaratory judgment. Declaratory judgments are frequently sought in the insurance context, either before or after a claim has been denied. This is an action for declaratory judgment pursuant to CPLR 3001. 2. This is an action for declaratory judgment pursuant to CPLR 3001. 2. Be careful what you ask for in your declaratory judgment action" could have been an appropriate subtitle.