General Accident Fire & Life Assurance Corp. v. Bergquist

The insureds demanded the protection afforded by the terms of the policy and threatened legal action to compel the insurer to pay any amount for which the insureds might be held liable to the contractors in the Sauk county action. The insurer asserted certain policy defenses *170and claimed it was not obligated to defend the insureds in the Sauk county action nor to pay the amount of any judgment therein.

After the insureds executed the nonwaiver agreement, the insurer did conduct the defense of the Sauk county action. It could have continued to defend until final judgment. If the judgment went…