Sec. 38a-321. (Formerly Sec. 38-175). Liability of insurer under liability policy.
Sec. 38a-321. (Formerly Sec. 38-175). Liability of insurer under liability policy. Each insurance company which issues a policy to any person, firm or corporation,
insuring against loss or damage on account of the bodily injury or death by accident of
any person, or damage to the property of any person, for which loss or damage such
person, firm or corporation is legally responsible, shall, whenever a loss occurs under
such policy, become absolutely liable, and the payment of such loss shall not depend
upon the satisfaction by the assured of a final judgment against him for loss, damage
or death occasioned by such casualty. No such contract of insurance shall be cancelled
or annulled by any agreement between the insurance company and the assured after the
assured has become responsible for such loss or damage, and any such cancellation or
annulment shall be void. Upon the recovery of a final judgment against any person, firm
or corporation by any person, including administrators or executors, for loss or damage
on account of bodily injury or death or damage to property, if the defendant in such
action was insured against such loss or damage at the time when the right of action arose
and if such judgment is not satisfied within thirty days after the date when it was rendered,
such judgment creditor shall be subrogated to all the rights of the defendant and shall
have a right of action against the insurer to the same extent that the defendant in such
action could have enforced his claim against such insurer had such defendant paid such
judgment.
(1949 Rev., S. 6191.)
History: Sec. 38-175 transferred to Sec. 38a-321 in 1991.
Annotations to former section 38-175:
Applies only to contracts made after statute took effect; constitutionality discussed; effect of payment by liability
insurance company after judgment on obligation of surety on bond releasing attachment. 97 C. 16. Under former law,
where policy indemnified against loss and not liability, insurer need not pay unless assured actually paid over money;
bankruptcy of assured before satisfaction of judgment; effect of present statute. 98 C. 452; 119 C. 416. Gives no greater
rights except for cancellation and annulment than assured had. 107 C. 651. Breach of covenant by assured is a defense;
facts held not to amount to breach by assured of covenant to render insurer "all cooperation and assistance in his power".
Id., 654. Pleading and burden of proof. 108 C. 566. Provision in policy that there should be no coverage if car is driven in
violation of law as to age of driver construed; facts held to show violation of provision. Id., 599. Cited. 111 C. 550. Judgment
creditor cannot recover from insurer if assured, because of breach of condition of policy, could not. 114 C. 313. Rights of
injured persons recovering judgments are to be determined as creditors, not lienors; in interpleader where policy amount
inadequate, equity will distribute pro rata. 115 C. 193. Waiver or estoppel may arise where insurer undertakes or continues
defense of action with knowledge of breach by assured of cooperation clause. 117 C. 89. Settlement of multiple claims;
insurer liable for fraud or bad faith in failing or refusing to settle claims within policy limit. Id., 147. "Absolutely liable"
means only that payment is not dependent upon satisfaction by plaintiff of a judgment; claimant has only inchoate right
against insurer until judgment. Id., 153. Judgment in original action that person was driving car is not res judicata that he
was an assured in action by judgment creditor against insurer. 118 C. 194. Where insurer pleads breach of policy, burden
is on one suing on it to prove performance. Id. To avoid policy, breach must be substantial and material. Id., 198. Settlement
with assured made in good faith in accordance with policy discharges insurer's obligation; creditor thereafter obtaining
judgment has no claim against insurer. Cited. 121 C. 514. Cited. 122 C. 196. Cited. 125 C. 509. Cited. 126 C. 87. Cited.
127 C. 258. Cited. 141 C. 574. Cited. 142 C. 251. The owner of a tort judgment has a right of recovery from the insurer
of the judgment debtor if the plaintiff has recovered a final judgment; the judgment is against a person who is insured by
the defendant against liability on it, and the judgment remains unsatisfied. Id., 388. Cited. 145 C. 74. Automobile liability
policy covered any person using automobile with permission of insured, held "use" not limited to operation of vehicle.
147 C. 713. Phrase "person responsible for the operation of the motor vehicle with the express or implied consent of the
insured" construed. 148 C. 15. If express language releasing the debtor is lacking, a person secondarily liable has the
defense of accord and satisfaction if actual performance of the composition agreement has been completed as to a given
signatory creditor. Id., 115. Cited. 150 C. 211. Insurer is not deprived of any defense it may have under policy, in absence
of collusion, against judgment creditor of insured. 152 C. 31. Injunctive relief against insurer to compel payment of judgment
against insured ordinarily denied on grounds of adequate remedy at law under this statute. Id., 249. Where, in declaratory
judgment action to determine insurance company's obligation to defend and pay judgment, another adequate remedy exists,
demurrer will be sustained. 153 C. 349, 350. Declaratory judgment may be made by trial court on matters which are litigable
under this section and becomes res judicata in subsequent action. 158 C. 251. Cited. 161 C. 388. Cited. 163 C. 131, 552.
Cited. 176 C. 676. Cited. 178 C. 32. The words "property" and "casualty" as used in this section discussed. 187 C. 363.
Cited. 199 C. 245. Cited. 206 C. 668. Cited. 213 C. 696. Cited. 217 C. 371. Cited. 220 C. 285. Cited. 232 C. 559.
Cited. 2 CA 282. Cited. 10 CA 125; Id., 135. Cited. 42 CA 177.
Statute does not impose absolute liability. 1 CS 81. Cited. 3 CS 364. Injured party becomes subrogated to the rights of
the assured against the insurer, without extending such rights in any way, except by prohibiting any termination of the
coverage by separate agreement. 5 CS 306. Whether policy classified is one against "loss" or "liability" is resolved by this
statute. Contract beneficiary need not allege insolvency of insured to prove it. 6 CS 468. An insolvent tortfeasor may not
by his breach of contract of insurance bar the action granted to an injured person against an insurer where the breach of
contract does not prejudice the insurer. 8 CS 469. Cited. 19 CS 396; 20 CS 455. A judgment creditor may be subrogated
to the insured's rights. 32 CS 52. When default judgment against car driver, allegedly driving with permission of insured,
was unsatisfied within thirty days, insurer cited as codefendant pursuant to omnibus clause of policy. 33 CS 523. Cited.
39 CS 85. Cited. 42 CS 164.
Motorcycle held not an "automobile" within meaning of exclusion clause of policy. 2 Conn. Cir. Ct. 164.
Annotations to present section:
Cited. 217 C. 371. Cited. 231 C. 756. Cited. 232 C. 559. Cited. 234 C. 182. Cited. 235 C. 185. Cited. 239 C. 144. Default
in declaratory judgment action does not bar suit under statute. 247 C. 331.
Cited. 28 CA 145. Cited. 35 CA 94; judgment reversed, see 235 C. 185. Cited. 42 CA 177. Cited. 44 CA 220. Cited.
58 CA 39. Collateral estoppel cannot be asserted against an insurer in action brought pursuant to this section. 69 CA 507.
Court found insurer bound by final judgment against insured that included finding of negligence. Id.
Cited. 42 CS 164.