What is a contribution action in an insurance litigation case?
A contribution action in insurance litigation is a legal action that is used by several insurers to resolve disputes about how much each insurer should pay for an underlying claim. In Washington, these actions often take place when multiple insurance companies are called upon to provide coverage for the same claim. In such a situation, the companies are required to cooperate and split the costs of the claim fairly and in accordance with the terms of the insurance policy. The “contribution action” is used to settle those disputes and assign financial responsibility to each insurer based on their policy limits and other factors. This process allows the companies to settle without having to go to court and can save both time and money. The process begins when one of the insurers brings a contribution action against the other companies, either as a complaint or as a counterclaim. This action is then heard by a judge or jury who then determines how much each insurer should pay. In short, a contribution action is a legal action used by multiple insurance companies to settle disputes about how an underlying claim should be divided among them. It is done through a process initiated by an insurer, heard first by the court or jury, and determined finally by the judge or jury. This process helps insurers resolve their disputes in an efficient manner when all parties must provide coverage for the same claim.
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