A provision in most D&O insurance policies that applies the deductible under Insuring Agreement B (i.e., coverage for the company to the extent the company indemnifies directors and officers) to any loss for which the company is legally permitted and financially able to indemnify, regardless whether the company actually grants the indemnification. Absent this type of provision, the insured company could simply fail or refuse to indemnify directors and officers (even though the company is legally permitted and financially able to provide the indemnification), thereby causing the loss to be covered under Insuring Agreement A, which typically has a zero deductible. In order to prevent the insured company from avoiding payment of the much larger deductible applicable to Insuring Agreement B, this provision applies the larger deductible if the company can indemnify, whether or not it actually does indemnify. Thus, in order to avoid the directors and officers having to personally fund the large Insuring Agreement B deductible, the insured company must indemnify the directors and officers when it can. If an EPL, fiduciary, or similar policy has different deductibles for indemnifiable and nonindemnifiable loss, those policies may also have a presumptive indemnification provision.