An insurance company has agreed to resume paying President Clinton's legal bills in the Paula Jones case now that all aspects of the lawsuit are to be appealed, an attorney said Saturday.

Chubb Group Insurance stopped covering Clinton's legal bills last year after a federal judge threw out Jones' defamation charges against the president. The company maintained that the president's personal liability policy did not cover the remaining allegation of sexual harassment.Now that Jones will appeal both the defamation and sexual harassment charges, the company has agreed to resume coverage, to an attorney familiar with the issue said.

"The bottom line is that since they're appealing that part of the order, . . . they have an obligation to defend," said the attorney, who spoke on condition of anonymity.

Chubb agreed to cover legal fees dating back to Jones' notice in April that she intends to appeal both aspects of the case, the attorney said.

Clinton's lead attorney on the Jones case, Bob Bennett, was away from his home and office on Saturday and not immediately available for comment, nor were officials at Chubb.

Still unresolved is payment of more than $1 million from Chubb and another insurance company, State Farm, according to the attorney who spoke on condition of anonymity.

Bennett has enlisted the Washington law firm of Covington & Burling to collect - by negotiation or by lawsuit - legal fees incurred by the president after the two groups stopped financing Clinton's defense last year when the defamation charge was dismissed.

The two insurance companies have already paid $1.5 million in legal bills for the president under a policy he bought several years ago.

Jones claims Clinton made advances toward her in a Little Rock hotel room in 1991 while he was governor of Arkansas. The president denies the charge.

A federal judge dismissed the sexual harassment charge in April. The allegation that Clinton defamed Jones was dismissed last August.