In Pennsylvania, a Cause of Action for Declaratory Judgment Accrues When an Insurer has Sufficient Facts to Believe that its Policy Does Not Provide Coverage

When an insurer is asked to cover a liability claim for which coverage is in doubt, the prudent course of action is to provide a defense subject to a reservation of rights. The reservation of rights preserves the insurer’s ability to deny coverage, for either defense and indemnity, if it is determined that the claim is not covered under the policy. In many instances, a reservation of rights is accompanied with the filing of a declaratory judgment action in which the insurer asks the court …

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