Insurance 101 – Chapter 11 – Volume 39 – Reliance on Advice of Counsel

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.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

Legal Disclaimer

The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.


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