Which law allows a negligence victim to sue an insurer directly or to sue both the insurer and wrongdoer jointly?

• A. Direct-action statute
• B. Binder
• C. Incontestable clause
• D. Contract of indemnity

Answer: (A)

Direct-action statutes allow a third-party tort victim to go after the insurer directly for damages, and in many cases they also let the plaintiff sue both the insurer and the wrongdoer in the same action. This legal path is designed so someone harmed by another’s negligence can recover from the insurer that issued the policy, up to the policy limits, without first having to sue the insured alone. The other options describe different, unrelated concepts: a binder is a temporary coverage agreement pending a formal policy, an incontestable clause protects certain policy representations after issuance, and a contract of indemnity is the general agreement to indemnify the insured but does not by itself authorize direct action against the insurer.