When a policy provides insurance against third-party claims, the insurer is obligated to make reasonable efforts to settle such a claim. If a settlement cannot be reached, then regardless of the claim's merit, the insurer must _______any suit against the insured.

Question

Quizplus · Accepted Answer

The insurer must defend any suit against the insured, as part of their obligation under a liability insurance policy, even if the claim is without merit.

When a Policy Provides Insurance Against Third-Party Claims, the Insurer