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Where coverage is potentially an issue, an insurer must decide whether to (1) assume its insured’s defense without reservation, despite the dispute; (2) obtain a non-waiver agreement after full disclosure of the coverage defenses it seeks to preserve; or (3) send a reservation of rights letter and appoint mutually agreeable defense counsel.

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Insurance policy interpretation is generally a question of law for the courts. In construing an insurance policy, the court’s purpose is to give effect to the parties’ intent.

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