Opinion ID: 2320469
Heading Depth: 1
Heading Rank: 4

Heading: Relevant Provisions of the Title Insurance Policy

Text: Since the duty to defend is determined generally by the terms of the insurance policy and the allegations in the complaint against the insured, see Western Exterminating Co., supra, 479 A.2d at 874, we now turn to the relevant sections of Mr. Stevens' title insurance policy. Under the Conditions and Stipulations section of the policy, Paragraph 4 imposes a duty to defend, and reads in relevant part: (a) Upon written request by the insured and subject to the options contained in Section 6 [options to pay or settle] of these Conditions and Stipulations, [United General], at its own cost and without unreasonable delay, shall provide for the defense of an insured in litigation in which any hired party asserts a claim adverse to the title or interests as insured, but only as to those stated causes of action alleging a defect, lien or encumbrance or other matter insured against by this policy. . . . [United General] will not pay any fees, costs or expenses incurred by the insured in the defense of those causes of action which allege matters not insured against by this policy. The insurance policy also contains relevant Exclusions from Coverage, and provides that United General will not pay loss or damage, costs attorneys' fees or expenses relating to matters excluded from coverage, including those set forth in Paragraph 3: 3. Defects, liens, encumbrances, adverse claims or other matters (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company [United General], nor recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under the policy.