Assumption of Obligation Explained

November 8, 2010

Duty C. in Section V. Duties After Loss of the ISO Personal Umbrella Policy reads as follows: ” The 'insured' will not, except at the 'insured's' own cost, voluntarily make payment, assume obligation or incur expense to others”
What constitutes “assume obligation,” and more specifically, is agreeing to be responsible for the first x dollars in damage when renting a vehicle assuming an obligation? 

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