The declaratory judgment would clarify the parties' rights and obligations under the insurance policy. Declaratory Judgment Actions are utilized to determine insurance coverage issues and to prevent bad faith allegations.Insurance contracts, now lacked standing to assert the remaining declaratory judgment claim in the complaint. This declaratory judgment action arose out of a July. Grange filed a declaratory judgment action to determine whether third-party allegations against the Roberts were covered under the Roberts' insurance policy. In. On. August 8, 2006, Transamerica filed a complaint seeking declaratory judgment that its method of administering. In January 2010, GM Sign filed this declaratory judgment action in the Wayne circuit court. First, she sought a declaratory judgment that she was the intended third party beneficiary of the insurance policy. The McCallisters have now moved for summary judgment on Count I of their. Complaint: Declaratory Judgment.