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Under the ISO Personal Auto Policy (PP 00 01) Part F — General Provisions, the Legal Action Against Us clause provides that no legal action may be brought against the insurer UNTIL which condition is met?

AThe insured has paid the applicable deductible and submitted a signed, sworn proof of loss to the insurer within the time required after the accident or loss
There has been full compliance with all policy terms, and for liability the insured's obligation is finally fixed by judgment or written agreement
CThe insured has first obtained a default judgment against the at-fault driver and assigned that judgment to the insurer
DThe state insurance commissioner has issued a formal market-conduct order against the insurer arising from the disputed claim

Why this is the answer

Part F's Legal Action Against Us provision bars premature suits. The general rule requires full policy compliance (notice, cooperation, proof of loss, etc.). For Part A liability specifically, the no-action clause additionally requires either (i) the insurer's written agreement that the insured has an obligation to pay, or (ii) a final judgment after trial determining the obligation. This prevents direct-action suits by third parties and reserves the insurer's right to litigate liability before paying. Other Part F provisions cover Bankruptcy, Changes, Fraud, Our Right to Recover Payment (subrogation), Policy Period and Territory, Termination, Transfer of Interest, and Two or More Auto Policies.

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