duty to pay
A term used to describe the nature of an insurer's defense obligations under
directors and officers (D&O) and employment practices liability insurance
(EPLI) policies.
Forms containing duty to pay (or non-duty to defend) provisions require only
that the insurer reimburse the insured for funds expended by the insured in
defending a claim. In contrast, policies containing "duty to defend" provisions
require the insurer to assume control of the claim defense process, including
selecting counsel and paying legal bills. See also
Duty to defend.
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PLI XXI.E