insurer is found to have breached its duty to defend and the indemnity contract provided coverage for potential legal liability, it will be liable for a judgment or settlement stemming from the underlying action that necessitated the indemnity claim when two requirements are met. First, the insured must show that the claim settled was in fact covered by the policy. See Vance, 730 S.W.2d at 522; see also Medical Protective, 581 S.W.2d at 26-27; O’Bannon, 678 S.W.2d at 398. Second, the settlement must have been reasonable and reached'in the absence of fraud or collusion. Wallins Creek Coal, 176 S.W. at 219; see also Grimes v. Nationwide Mut. Ins. Co., 705 S.W.2d 926, 932 (Ky.Ct.App.1985); Estate of Clem v. Western Heritage Ins. Co., 195 Fed.Appx. 328, 332-33 (6th Cir.2006) (per curiam) (<HOLDING>). Limiting this rule to only those cases where
holding that an insurer had a duty to defend the insured until it could establish that those claims were not supported by the facts holding that insurer had a continuing duty to defend holding that insured may recover from its insurer any attorney fees incurred in successfully attempting to force the insurer to defend an action against the insured holding that an insured who breaches it duty to defend is liable for the costs and reasonable attorney fees incurred by the insured in defending  against the claims asserted as well as consequential damages holding that an insurer that mistakenly fails to defend an insured is liable for reasonable settlements under kentucky law