Interesting article from Property Casualty 360 today indicating that various jurisdictions have slowly changed the law regarding an insured’s obligation to repay defense costs or settlement fees while being defended under a reservation of rights.
According to the article, “[a] survey of courts around the country shows the majority now refuse to allow insurers to recoup settlement or defense fees for defenses provided under reservation of rights.” Indeed, the article points out that the majority rule today may actually be that the insurance company is not entitled to recoup those expenses under a standard reservation of rights.
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