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When a Policy Provides Insurance Against Third-Party Claims, the Insurer

Question 48

Multiple Choice

When a policy provides insurance against third-party claims, the insurer is obligated to make reasonable efforts to settle such a claim. If a settlement cannot be reached, then regardless of the claim's merit, the insurer must _______any suit against the insured.


A) prosecute
B) avoid at all costs
C) indemnify
D) defend

Correct Answer:

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