All sums allocation permits a policyholder to select any triggered policy to pay the entire loss, leaving that insurer to seek contribution from others.

Allocation is the method for dividing a loss among multiple triggered policies, policy periods, or insurers when injury or damage spans several years.

The broader duty to defend principle holds that an insurer must defend whenever any claim is potentially covered, even if most claims clearly are not.

Contribution between insurers is a carrier's claim to recover a share of a loss from other insurers covering the same risk.

A coverage denial is the insurer's determination that a claim falls outside the policy, communicated in writing with the grounds stated.

Coverage litigation is a dispute between an insurer and its policyholder, or among insurers, over whether and to what extent a policy responds to a claim.

A declaratory judgment action is a lawsuit asking a court to determine the parties' coverage rights and obligations before or alongside the underlying...

A disclaimer of coverage is the insurer's notice that it will not provide coverage, required promptly in some states to preserve certain defenses.

The duty to defend is an insurer's obligation to provide and pay for a legal defense whenever a lawsuit alleges facts that could potentially fall within...

The duty to indemnify is an insurer's obligation to pay a settlement or judgment for claims actually covered by the policy, which is narrower than the...

The eight corners rule determines an insurer's duty to defend by comparing only the four corners of the complaint to the four corners of the insurance policy.

Equitable subrogation allows an insurer that paid a loss to step into the insured's position and pursue the party responsible.

The extrinsic evidence exception permits consideration of facts beyond the complaint and policy when determining the duty to defend.

Horizontal exhaustion requires all primary policies across triggered years to be exhausted before any excess coverage responds.

An other insurance clause specifies how a policy responds when other coverage applies to the same loss.

Pro rata allocation divides a long-tail loss among triggered policy periods, typically by years on the risk, with uninsured years borne by the policyholder.

A reservation of rights is a written notice from an insurer stating that it will defend a claim while reserving its right to later deny coverage for some...

Targeted tender permits an insured with multiple applicable policies to select which insurer will defend and indemnify, overriding other insurance clauses.

Vertical exhaustion permits an insured to access excess coverage in a selected policy year once that year's underlying limits are exhausted.