An insured has a CGL with $1,000,000 per occurrence, $3,000,000 aggregate. A claim by one person is made against the insured for $2,000,000. The insurer accepts that the claim is covered by the insurance, but disputes the value of the claim. How much is the insurer obligated to pay in defense, if it wants to dispute the value of the claim, and what provision of the insurance policy is relevant here?