California Insurance Code & EthicsQuestion 44 of 474
Under §11580, an injured third party who has obtained a judgment against an insured tortfeasor in an auto accident may bring a direct action against the insurer when:
a.Direct actions against insurers are prohibited in California
b.The judgment remains unsatisfied 30 days after notice to the insurer
c.Only if the insurer admits coverage in writing
d.At any time after the accident, without first obtaining a judgment
Explanation
Insurance Code §11580(b)(2) authorizes a direct action against an insurer when a judgment in favor of the injured person against the insured remains unsatisfied for at least 30 days after service of notice of entry of judgment. The provision must be included in every California liability policy.
Law Reference: Cal. Ins. Code §11580This topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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