If a lawsuit against Ari is without merit, what duty does the insurer still owe him?

In the context of insurance law, when an insurer provides coverage to a policyholder, it typically has an obligation to defend the policyholder against any legal action, regardless of the merits of the lawsuit. This duty to defend is a broad obligation that exists even if the claims made in the lawsuit are deemed without merit.

In this case, even though the lawsuit against Ari has no merit, the insurer still has a duty to defend him. This means the insurer must provide legal representation and cover the legal costs associated with the defense of the lawsuit. The rationale behind this obligation is that the insurer is presumed to have a better understanding of the legal complexities and can potentially negotiate settlements or dismissals effectively, regardless of the lawsuit's lack of merit.

This duty is fundamental to the insurer's role as it provides a safety net for the policyholder, ensuring they are not left to fend for themselves against potentially costly legal battles. Consequently, the insurer's duty to defend is a key aspect of the contractual relationship they have with the insured and is typically specified in the terms of the insurance policy.