Insurance Fraud & the Attorney Client Privilege
Where an insurer retains an FPCA as an independent coverage counsel to provide legal advice regarding the insurer’s coverage obligations under the policy the attorney-client privilege may be invoked to prevent disclosure of communications between the insurer and its separately-retained coverage counsel. Since the coverage counsel is retained solely by the insurer and owes no duty of loyalty to the insured, advice may be given without prejudice or conflict.
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