Defense and Settlement. 1. We have the right, but not the duty, to investigate and/or defend any claim for errors and omissions asserted against a covered party. If we defend, we have the exclusive right to select defense counsel but will endeavor to work with the covered entity. 2. We have the right to settle any claim. We are not obligated to obtain the covered party’s consent, but will endeavor to obtain such consent or agreement. 3. We have the discretion to defend a claim for which no errors and omissions coverage is afforded if we determine that provision of a defense or payment of defense costs may avoid a legal precedent that may have a materially adverse effect upon us or our members in other circumstances or proceedings. Such discretion shall be absolute and unconditional and shall not be subject to any requirement of reasonableness or fairness whatsoever. 4. The amount we will pay for errors and omissions, which includes judgments, settlements and defense costs, is subject to the limit of liability set forth in the Information Pages. Defense costs are part of and not in addition to the limit of liability. 5. Our obligations under this coverage part end when we have used up the limit of liability in the payment of judgments, settlements or defense costs (or any combination thereof) under coverages A, B, C or D. This applies to both claims and suits pending at that time and those filed thereafter.
Appears in 5 contracts
Samples: Coverage Agreement, Coverage Agreement, Coverage Agreement
