Asked by VALERIA BARDALES on Jun 19, 2024
Verified
An insurer's "duty to defend" the insured requires:
A) paying the insured any compensatory damages incurred.
B) ensuring that there is no breach in bad faith.
C) furnishing the insured with an attorney for a liability case.
D) accepting any punitive damages on behalf of the insured.
Duty To Defend
The duty to defend entails a legal obligation, often found in insurance policies, where the insurer must provide legal defense to the insured party in case of a lawsuit that falls under the policy coverage.
Compensatory Damages
Monetary awards issued to a plaintiff to compensate for actual losses, injuries, or damages they have incurred.
Liability Case
A legal dispute or lawsuit in which the plaintiff seeks damages from the defendant due to injury or loss caused by the defendant’s actions or negligence.
- Comprehend the essential nature of the duty of an insurer to defend and the situations in which it can be called upon.
Verified Answer
RA
Riley AkinsJun 22, 2024
Final Answer :
C
Explanation :
If a liability claim is such that the insurer would be obligated to cover the insured's liability if the claim were proven,the insurer has a duty to defend the insured.The duty to defend means that the insurer must furnish,at its expense,an attorney to represent the insured in litigation resulting from the claim against her.
Learning Objectives
- Comprehend the essential nature of the duty of an insurer to defend and the situations in which it can be called upon.