Simple English definitions for legal terms

allegations-of-the-complaint rule

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A quick definition of allegations-of-the-complaint rule:

The allegations-of-the-complaint rule, also known as the eight-corners rule in insurance, means that an insurance company has a duty to defend its insured based solely on the allegations made in the complaint against them. This means that the insurance company cannot consider any evidence outside of the complaint when deciding whether or not to defend their insured.

A more thorough explanation:

The allegations-of-the-complaint rule is also known as the eight-corners rule in insurance. This principle states that a liability insurer's duty to defend its insured is determined solely by the allegations made in the complaint against the insured and the terms of the insurance policy.

For example, if a person is sued for causing a car accident and their insurance policy covers them for liability in car accidents, the insurance company is obligated to defend the insured based on the allegations made in the complaint. If the complaint alleges that the insured caused the accident, the insurance company must defend the insured, even if the insured denies causing the accident.

The allegations-of-the-complaint rule is important because it ensures that insurance companies fulfill their obligation to defend their insureds based on the terms of the insurance policy and the allegations made against the insured.

allegation of use | allegatum


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