Historically, liability insurance policies have imposed on policyholders a duty to cooperate with insurers in the defense of actions. More recent policies have expanded this duty to impose upon policyholders an obligation to cooperate in the investigation of claims, as well.
The Limited Scope of the Duty to Cooperate
Although it is important for both policyholder and insurer to review carefully the cooperation clause in a liability insurance policy to determine its precise, expressed scope, it also is important for the parties to recognize that ethical rules and decisional law may serve to limit the stated scope of any duty to cooperate.
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