Reliance on Advice of Counsel
An insurer has a right to rely on the advice of counsel in a case where the advice is needed and is not contrary to the knowledge and experience of the insurer. The insurer is not caught between its right to rely on counsel and its duty to independently assess coverage. An insurer is not exposed to malicious prosecution liability if it has probable cause to file and prosecute its complaint, whether or not it seeks the advice of counsel. Reliance on the advice of counsel is but one way to establish probable cause.
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