All the following are TRUE statements regarding legal defense overage under an HO-3's Personal Liability Coverage, EXCEPT: The Insurer has the right to settle the claim or suit out of court without the insured's permission or consent Unless the claim is settled for a lesser amount, defense costs continue until the policy limits are exhausted by payment of a settlement The insurer can deny defending the insured if the suit is groundless, false, or fraudulent Defense costs are paid separately from the Coverage E liability limit and do not affect the amount available to pay judgements or settlements.