The general rule for determining whether a duty to defend exists for a particular claim is easily stated. If the allegations against the insured fall within the scope of coverage afforded by a liability policy, then the insurer has a duty to defend its insured. This general rule is commonly referred to as the four corners rule.
However, insurers frequently face a dilemma in determining whether they have a duty to defend where the allegations in a tendered suit arguably fall within the scope of coverage under …
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