Duty to pay

Term · Insurance and risk management · MLC-T-INS-001235

An insurer's obligation, found in many directors and officers and other management liability policies, to pay or advance the insured's defense costs as they are incurred while the insured chooses counsel and controls the defense. It differs from a duty to defend, where the insurer appoints counsel and directs the defense, and from the duty to indemnify, which concerns settlements and judgments. Such policies commonly require the insurer's consent to settlements and to defense counsel and costs.

Table 1. Record
Identifier	MLC-T-INS-001235
Field	Insurance and risk management
Subject	Management Liability

Record as JSON

{
  "id": "MLC-T-INS-001235",
  "term": "Duty to pay",
  "field": "Insurance and risk management",
  "definition": "An insurer's obligation, found in many directors and officers and other management liability policies, to pay or advance the insured's defense costs as they are incurred while the insured chooses counsel and controls the defense. It differs from a duty to defend, where the insurer appoints counsel and directs the defense, and from the duty to indemnify, which concerns settlements and judgments. Such policies commonly require the insurer's consent to settlements and to defense counsel and costs.",
  "subject": "Management Liability",
  "url": "https://mlchart.com/terminology/insurance/duty-to-pay/"
}

Record 1,064 of 3,708 in Insurance and risk management terminology (MLC-0106). Request the full dataset.