Insurance 101 – Chapter 13 – Volume 23 – Reservation of Rights

Reservation of Rights

The Cumis doctrine is not without limit. Not every reservation of rights requires independent counsel. One court of appeal held that even if a liability insurer’s denial of coverage for punitive damages in an underlying defamation action against the insured could be construed as a reservation of rights, since the insurer remained liable for any compensatory damages which might be awarded, there was no conflict of interest requiring the insurer to furnish independent counsel to represent the insured.

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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