advancement of defense costs provision
A provision in directors and officers liability policies obligating the insurer
to pay defense and indemnity costs as incurred. Such provisions eliminate the
need for insured directors and officers or the corporate organization to pay
such costs prior to receiving reimbursement from the insurer. This is an important
aspect of D&O coverage because both defense and indemnity expenses associated
with claims against directors and officers are considerable.
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PLI X.B,
X.E.