Exam DISC-RM Practice Question 245
Study guide: Exam DISC-RM
A liability insurer receives a suit against its insured whose allegations include conduct that may fall under an exclusion. It wants to defend the insured while it investigates, without giving up its right to deny coverage later. Which statement about its options is correct?
- A) A reservation of rights is a denial that ends the insurer's duty to defend
- B) A reservation of rights is generally a one-sided letter, while a non-waiver agreement may be signed by both parties
- C) A non-waiver agreement is a denial of coverage, sent once the investigation is complete
- D) Neither is needed, because defending a suit can never waive a coverage defense
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