Personal Auto PolicyQuestion 374 of 474
The duty to defend under Part A of the personal auto policy means the insurer:
a.Must defend the insured against any suit, covered by the policy or not
b.Defends only when the claimant demands more than the policy limit
c.Must defend a suit seeking damages the policy covers, and may settle
d.Reimburses defense costs only after a judgment has been entered
Explanation
The insurer has both the right and the duty to defend any suit asking for damages that Part A would pay, and it may investigate and settle any claim as it thinks appropriate. The duty is tied to the allegations, so it does not extend to a suit seeking damages the policy does not cover. It ends once the limit of liability has been exhausted by payment of judgments or settlements.
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