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duty to pay

The term "duty to pay" is used to describe the nature of an insurer's defense obligations under directors and officers and employment practices liability insurance policies.

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Additional Information

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.

Related Terms

Duty to defend is a term used to describe an insurer's obligation to provide an insured with...