Fees and Policy Limits
Have a case with 100k policy limit. Policy says
costs and fees come out of that limit. Can they do that?
Answer: Probably, so long as the policy is not a statutory policy so that
applying the reduction for defense costs would provide less coverage than the
statute requires. The general rule is that if the coverage is not
statutorily required, the parties are free to contract for whatever policy
provisions they wish. See: Frank v. Allstate, 1986 OK 42,
727 P.2d 577; Equity Mut. Ins. Co. v. Spring Valley Wholesale
Nursery, Inc., 1987 OK 121, 747 P.2d 947.
Posted on Sun, February 28, 2010
by Sharon Coleman filed under