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Our client had a construction company with his brother. They split the business and there are currently two companies. The other brother filed an Ex Parte Motion for issuance of pre-judgment garnishee against our client. We filed a claim under IL 00 17 11 85, understanding that there are coverage issues. The carrier questions whether property damage and/or an occurrence are alleged in the complaint. The insured has an attorney, and the carrier is saying they do not believe it is clear that a defense is owed at this time so is having insured attorney respond to the complaint. They are referring the matter to their coverage counsel and will reimburse if a defense is owed. No reservation of rights has been issued, and we believe a reservation of rights should be issued by the carrier and a defense owed to the insured from the time we tendered the claim to the carrier. Your opinion is appreciated.

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