Some insurance companies have argued that “improper” advancement of defense costs by the corporation pursuant to corporate indemnity statutes somehow permits the insurance company to “recoup” defense costs they previously advanced by re-litigating the policyholder’s entitlement to defense costs even after a successful defense.
Read the following analysis by William G. Passannante, Esq.:
http://agentsofamerica.org/page.php?id=1520