Which policy condition refers to the insured's duty to cooperate with the insurer?

The answer centers around the "Duty to Defend." This policy condition mandates that the insured must cooperate with the insurer in defending claims and lawsuits against them. This cooperation can include providing necessary information, attending hearings or trials, and not hindering the insurer's efforts to settle or defend the case.

This condition is critical because it emphasizes the partnership between the insured and the insurer. Effective defense strategies hinge on the insured’s full involvement and transparency, ensuring the best possible outcome in legal matters.

Understanding the concept of cooperation is fundamental in property and casualty insurance, as failure to comply with this duty may lead to adverse consequences for the insured, possibly including the denial of coverage for the defense or an obligation to reimburse the insurer for costs incurred.