Merchants Mutual Casualty Co. v. Kennett

An insurer’s duty to defend an action for negligence brought against the person insured should, as a general rule, be determined before trial through proceedings for a declaratory judgment. American &c. Ins. Co. v. Garage, 86 N. H. 362; Gibbs v. Company, 87 N. H. 19, 21; American &c. Ins. Co. v. Bush, 88 N. H. 383, 385; Laporte v. Houle, ante, 50.

And because this is the approved procedure by which a liability insurance company may ascertain the extent of coverage without assuming the defence of the suit and thereby admitting its liability, no price is exacted from the company for taking the…