Practice point: The insurer has a duty to defend when the complaint's allegations suggest a reasonable possibility of coverage, or where the insurer has actual knowledge of facts establishing a reasonable possibility.
Students should note that an ambiguity in an exclusionary clause will be construed most strongly against the insurer.
Case: DMP Contr. Corp. v. Essex Ins. Co., NY Slip Op 06548 (1st Dept. 2010)
Here is the opinion.
Tomorrow's issue: Ethics.
