We granted certiorari in this insurance case to consider the procedural question whether an automobile insurer, after expressly denying coverage without qualification or conditions, may bring an action for declaratory judgment to determine its contractual duties to its insured when no litigation is pending against the insured at the time the declaratory judgment action is filed but the insurer thereafter provides a defense to the insured under a reservation of rights. See Direct General Ins. Co. v. Drawdy , 258 Ga. App. 149 1 572 SE2d 629 2002. For the reasons that follow, we hold that dismissal of an insurer’s declaratory judgment action is proper under these circumstances and accordingly reverse the contrary ruling in the Court of Appeals. David Drawdy was insured by Direct General in September 1999 when Drawdy’s nephew, while driving Drawdy’s car, collided first with a vehicle owned by Billy Niles, then fled from police pursuit and crashed into a tree, killing his passenger, Chandler. The following month after investigating the matter, Direct General unconditionally denied all coverage under the policy for the collisions1 and communicated its decision by letters to Drawdy’s nephew and counsel for Chandler’s family and estate hereinafter “Chandler”.
Nearly a year after the accident, in August 2000, Direct General filed a complaint seeking a declaration that it had no duty to indemnify or defend Drawdy or his nephew. No tort action arising out of the collisions had been filed at that time and the complaint expressly stated that Direct General had expressly denied coverage.2 After raising the absence of an actual controversy in his responsive pleadings, Drawdy moved in September 2001 to dismiss the declaratory judgment action on the basis that it failed to state a claim upon which relief could be granted. In its response brief to Drawdy’s motion, Direct General asserted that Chandler brought suit against Drawdy a week after the dismissal motion was filed3 ; the insurer attached to its brief a copy of the suit, which was filed in a different court in the same county. Direct General did not assert in its brief that it was providing a defense for Drawdy under a reservation of rights, although it appears from the briefs of the parties on appeal that the insurer thereafter did so. The trial court granted Drawdy’s motion to dismiss in December 2001.
