DEFENSE, INVESTIGATION AND SETTLEMENT OF CLAIMS
As respects such CLAIMS which are covered by this policy, the Company shall:

1. have right and duty to defend, including selection of counsel and arbitrators, in any INSURED’S name and on any INSURED’S behalf any CLAIM for DAMAGES against any INSURED, even if such CLAIM is groundless, false or fraudulent and shall have the right to make such investigation, negotiation and settlement, subject to II.B. below, of any CLAIM as it deems expedient;
2. not settle any CLAIM without the written consent of the NAMED INSURED which consent shall not be unreasonably withheld. If, however the NAMED INSURED refuses to consent to a settlement recommended by the Company and elects to contest the CLAIM or continue legal proceedings in connection with such CLAIM, the Company’s liability for the CLAIM shall not exceed the amount for which the CLAIM could have been settled, including CLAIMS EXPENSES up to the date of such refusal, or the applicable limits of liability, whichever is less;
3. reimburse up to $500 to each INSURED for each day or part thereof for his or her attendance at the Company’s request at trial, court-imposed hearing, settlement conference, mediation or arbitration proceeding involving a CLAIM, but the total amount so payable shall not exceed $10,000 per CLAIM. Such payments shall be based upon 50% of the normal hourly billing rates for each INSURED. The deductible shall not apply to this provision, however, any payments made by the Company under this provision will be included within the applicable limit of liability and not in addition thereto.