• Allocation is (1) assigning to individual policies the obligation to protect or indemnify the insured when the loss or damage occurs during more than one policy period. (2) Determining which elements of protection costs must be paid by the insurer and which may be reimbursed by the insured, depending on the covered and uncovered elements of the claim or claim brought against the insured person. Some courts have held that an insurer is not required to pay the costs of defending uncovered elements of a claim.