HUG, Circuit Judge:
The issue presented in this case is whether an insurer is obligated under a malpractice policy to represent an insured where, in a collection action, a debtor of the insured claims an offset by reason of the insured's malpractice on a matter unrelated to the debt. The district court held that the insurer is not obligated to represent the insured. We reverse.
I
American Home Assurance brought this declaratory relief action to settle...
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