Which of the following statements about the insurer's obligation to provide a legal defense under the personal liability coverage (CoverageE)of the homeowners policy is (are)true?
I.The insurer agrees to defend the insured only if the suit is not groundless,false,or fraudulent.
II.The insurer's obligation to defend the insured ceases after the amount paid for damages from an occurrence equals the policy limit.

Question

Quizplus · Accepted Answer

The insurer's obligation to defend the insured ceases after the amount paid for damages from an occurrence equals the policy limit. However, the insurer agrees to defend the insured even if the suit is groundless, false, or fraudulent, making statement I incorrect.

Which of the Following Statements About the Insurer's Obligation to Provide