More on Conflicts of Interest
The adjuster should not instruct the attorney to collect facts without any relevance to the defense of the insured but that are particularly directed to an issue that would tend to defeat coverage. Nor should the adjuster pose hypothetical cases involving similar facts to the attorney hired to represent the insured. Rather, the adjuster should consult experienced coverage counsel regarding coverage issues, including assistance drafting reservation of rights letters to the insured. Coverage counsel should never be involved in the defense of the insured or the insurer because coverage counsel will usually be a key witness in any future litigation resulting from the advice provided. Coverage counsel’s work should be limited to providing advice to the person or entity who has retained him or her.
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