Insurance 101 – Chapter 13 – Volume 19 – More on Conflicts of Interest

More on Conflicts of Interest

The adjuster should not instruct the attorney to collect facts without any relevance to the defense of the insured but that are particularly directed to an issue that would tend to defeat coverage. Nor should the adjuster pose hypothetical cases involving similar facts to the attorney hired to represent the insured. Rather, the adjuster should consult experienced coverage counsel regarding coverage issues, including assistance drafting reservation of rights letters to the insured. Coverage counsel should never be involved in the defense of the insured or the insurer because coverage counsel will usually be a key witness in any future litigation resulting from the advice provided. Coverage counsel’s work should be limited to providing advice to the person or entity who has retained him or her.

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

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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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