Insurance
Mar. 30, 2017
An insurer's duty to indemnify for a settlement
As one court has stated, "even if the insurer has not denied coverage or refused to defend, the insurer has a duty to accept a reasonable settlement."
Kirk A. Pasich
Partner and Co-Leader of the Insurance Recovery Group
McGuireWoods LLP
Phone: (310) 956-3462
Email: kpasich@mcguirewoods.com
Loyola Law School
General liability insurers frequently reserve their rights to deny coverage when their insureds are sued. When insurers do so, they often are required, pursuant to California Civil Code Section 2860, to pay for independent counsel to represent their insured. One question that then often arises as to an insurer's duty to pay for a settlement entered into by its insured.
As one court has stated, "even if the insurer has not denied coverage or refused to defend, the insurer has a duty ...
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