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Article: DEPLOYING THE Advice of Counsel DEFENSE.(Brief Article)
- Article from:
- Claims
- Article date:
- April 1, 2000
- Author:
CopyrightCOPYRIGHT 2000 Insurance Week, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Imagine a case in which an insurer hires counsel to defend an action on behalf of its insured and must decide whether to accept or reject a settlement offer that is within the insurance policy limits. The insurer relies on the judgment of counsel in rejecting the offer and continues to litigate the case. The jury awards the claimant an amount well in excess of the policy limit, and the insured subsequently sues the insurer for bad faith failure to settle within policy limits.
Similarly, imagine a first-party situation in which an insurer seeks the advice of counsel as to whether a claim, submitted by the insured for a loss that occurred to insured property; is ...