What Is Duty to Defend?
A liability insurer's obligation to defend the insured against lawsuits related to covered claims, including providing legal representation and paying defense costs up to policy limits.
Duty to Defend across 3 exams
Duty to Defend appears on the following exams. Each defines it in the context candidates are tested on:
- Property & Casualty
- A liability insurer's obligation to defend the insured against lawsuits related to covered claims, including providing legal representation and paying defense costs up to policy limits.
- Personal Lines
- The insurer's obligation to pay defense costs for covered claims, even before determining liability. This is one of the most valuable aspects of liability insurance and a frequently tested concept because it can involve defending against covered and uncovered claims.
- All-Lines Adjuster
- The insurance company's obligation to provide legal defense to the insured in a covered liability claim, even if the claim is questionable or frivolous. The insurer pays defense costs in addition to any settlement or judgment within policy limits. This duty ends when the policy limits are exhausted.