Jurisdiction is diversity.
Weiss v. Johnson et al. In the present action, it is alleged that the disclaimer of coverage violated the liability insurance contract and amounted, in these circumstances, to bad faith. The insurers contend that the pollution exclusion applies to the underlying damage claim and, accordingly, the decision to deny coverage did not involve bad faith. I. Duty to Defend Under the insurance policy, the insurer is required to defend the insured against covered claims. The duty to defend is broad and is operative if recovery is conceivably possible.