It is commonly thought that where a liability insurer, of whatever type, appoints lawyers to represent an insured in a legal proceeding without an express reservation of rights, and in a way which tends to lead the insured into believing that indemnity has been granted by the insurer, that the insurer will not be entitled to subsequently refuse indemnity because of, for example, the application of an exclusion clause. Instead, the insurer will be taken to have ‘elected’ to grant indemnity and will not be permitted to resile from that election.