Defense costs of certain third-party claims

In addition to the amounts set forth in this chapter, the department shall provide the defense of third - party claims and all costs related thereto for claims of covered parties arising under this chapter, including attorneys' fees. However, the department may not provide the defense of third - party claims and costs relating thereto, including attorneys' fees, if the coverage limit under this section is exhausted by judgments, settlements, or corrective action costs prior to the commencement of a civil action by the third - party claimant against the covered party. Source: SL 1992, ch 260 , § 8; SL 2024, ch 146 , § 6.