A default judgment against the insured should not deprive the injured party from pursuing the coverage litigation according to the Ninth Circuit's decision in Westchester Fire Ins. Co. v. Northwest Airlines, Inc., No. 07-17383, 2009 U.S. App. LEXIS 23718 (9th Cir. Oct. 28, 2009).  

    The insured provided maintenance services for Northwest Airlines at

     A liability policy typically requires the insured to cooperate with the insurer.  Under the provision, the insured must, among other things, cooperate with the insurer in investigating or settling of the claim.  Breach of the cooperation clause by the insured relieves the insurer of liability under the policy.  But the insurer must show