66 N.Y.2d 6 (N.Y. 1985) Cited 109 times 2 Legal Analyses
Holding that, where an insurer conducted its own investigation and concluded that a driver had been operating a vehicle without the owner's consent, but the underlying complaint alleged such consent, the insurer was not permitted to rely on its own investigation to refuse a defense - instead, the insurer should have assumed the defense of the action and sought a "prompt judicial determination, whether by summary judgment, declaratory judgment or otherwise that, contrary to the allegations of the personal injury plaintiff's complaint, the driver actually did lack permission of the insured, and that the insurer is not obligated by its contract of insurance to furnish a defense to the driver"