In addition to covering an insured's liability due to bodily injury or property damage, the insurer promises to defend against suits claiming such injuries.The insurer's obligation to defend against liability ends when:
A)the claims are filed after the retroactive date.
B)a number of exclusions are intended to standardize the risk and/or to limit duplicate coverage.
C)it has paid out its limits for any of the coverages in settlements or judgments.
D)the claims are filed after the extended reporting period.
E)the time lag between premium payments and loss payments is smaller.

Question

Quizplus · Accepted Answer

The insurer's obligation to defend against liability typically ends when it has paid out its limits for any of the coverages in settlements or judgments. This is because the insurer's duty to defend is generally considered fulfilled once the policy limits have been exhausted through payments of settlements or judgments.

In Addition to Covering an Insured's Liability Due to Bodily