reservation of rights
An insurer's notification to an insured that coverage for a claim may not
apply. Such notification allows an insurer to investigate (or even defend) a
claim to determine if coverage applies (in whole or in part) without waiving
its right to later deny coverage based on information revealed by the investigation.
Although a reservation of rights protects an insurer's interests, it also alerts
an insured to the fact that some elements of a claim may not be covered, thereby
allowing the insured to take necessary steps to protect its potentially uninsured
interests.
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PLI IV.G