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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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