Insurance 101 – Chapter 13 – Volume 33 – More Insurance Defense Malpractice

More Insurance Defense Malpractice

few jurisdictions have also acknowledged that, even if the excess insurer is not a client, it is at least a third party beneficiary of these legal services and thus entitled to bring suit. For example, in Paradigm Insurance Company v. The Langerman Law Offices,109 the Arizona Supreme Court found that although an insurer’s retention of defense counsel does not necessarily give rise to an inherent conflict of interest in every case, neither does an insurer always enjoy “client” status. The court agreed with defense counsel that “the potential for conflict between insurer and insured exists in every case; but we note the interests of insurer and insured frequently coincide.”

Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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