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Legal Action Against Insurer

Legal Action Against Insurer

Definition

A provision in most standard insurance coverage forms that imposes certain limitations on an insured's right to sue the insurer for enforcement of the policy. Sometimes titled "Legal Action against Us," such provisions typically require that the insured meet all its own obligations under the policy before bringing suit in contract. Some legal action against insurer clauses in liability policies also attempt to limit the prerogatives of third-party beneficiaries by stipulating that nothing in the policy gives any third party a right to sue the insurer for damages being sought against an insured.

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