Insurance 101 – Chapter 11 – Volume 71 – Independent Counsel

Independent Counsel

If the insured is permitted to hire his or her own attorney at the insurer’s expense, that attorney’s advice to settle will generally not support an inference of bad faith. American Employers’ Insurance Co. v. Crawford, 87 N.M. 375, 381, 533 P. 2d 1203, 1209 (1975). An attorney representing solely the interests of the insured will likely recommend a settlement within the policy limits since such a settlement would eliminate any exposure of the insured to an excess judgment. Even if the exposure to liability is slim, the personal attorney is concerned only with protecting the client’s assets. Counsel’s recommendation to settle must be considered in light of this concern.

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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