Which of the following statements is (are)true with respect to the treatment of legal defense costs under the ISO Commercial General Liability policy?
I.Legal defense costs usually are counted against the policy limit.
II.Once the insurer has paid out the applicable limit of liability,the insurer's duty to defend ends.

Question

Quizplus · Accepted Answer

II is correct because under the ISO Commercial General Liability policy, the insurer's duty to defend the insured against lawsuits ends when the insurer has paid out the limit of liability specified in the policy. Legal defense costs are typically paid in addition to the policy limit, not counted against it, making statement I incorrect.

Which of the Following Statements Is (Are)true with Respect to the Treatment