Timely notice by the insured to the insurer of service of a complaint or timely notice of a claim from the insured to the insurer is required by every policy. Once on notice, the insurer’s refusal to defend may result in a finding that it has breached its duty to the insured, even if there has not been an excess judgment. Failure to provide a defense where the insurer was on notice that a defense was probably owed, and where the case resulted in a defense verdict at the insured’s expense will, in most situations, result in finding of bad faith of the insurer.
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