Abstract

An insurer may face legal consequences when failing to defend an insured. For example, a failure to respond in a timely manner to a tender of defense by apolicyholdermay be an unfair claims settlement practice. This article discusses these consequences and the situations in which they may arise. Specifically, it addresses the possible remedies for breach of contract arising from a failure to defend. It then describes when, if ever, an insurer's breach affects its right to assert policy defenses to its duty to indemnify. Finally, the article discusses what, if any, policy conditions are waived by an insurer's failure to defend.

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