IRS Form 1099, 1099-NEC, and Form 1099-MISC: Advanced Issues and Updates

Ethical Conflicts in the Tripartite Relationship (OnDemand Webinar)

$199.00

SKU: 410654EAU

Description

Learn the ethical conflicts that can arise between insurance carriers, attorneys, and the insured and how their rights are protected.Liability insurance coverage provides insureds with defense and indemnity coverage for certain covered claims. In most instances, the insurance company, the insured, and the defense counsel the insurance company retains to defend the insured are all aligned with the same goal of obtaining the best possible resolution of the underlying lawsuit. Everyone is rowing smoothly in the same direction. However, sometimes the underlying lawsuits against the insured allege a mix of covered and uncovered claims. When this occurs, the players in the tripartite relationship the insured, defense counsel, and insurer can become somewhat of a dysfunctional family.When an insurance company is defending an insured under a reservation of rights, it can become a problem when the potential exists for the defense lawyer to develop a case toward a result favorable to the insurer on a coverage issue, on the one hand, or to the policyholder on the other hand. For example, if an underlying complaint alleges mutually exclusive theories of recovery, such as negligence (covered) and intentional torts (not covered), both the carrier and the defense lawyer are put into difficult positions with potential ethical pitfalls. There are at least four main conflicts that may arise when there is a potential coverage dispute whether the insurer or the policyholder controls the defense whether the insurer or policyholder controls the flow of information the reasonableness of the attorney’s fees and expenses and attempts by an insurer to manage litigation costs and whether the insurer or policyholder controls settlement. This presentation addresses the best ways to deal with and avoid the ethical dilemmas that may arise out of the tripartite relationship and will give you an understanding of the roles and duties of all the players before engaging in the relationship.

Date: 2023-07-26 Start Time: End Time:

Learning Objectives

Insurer’s Right to Control the Defense
• Policy Language Granting Primary Insurer the Right to Control the Defense of the Underlying Lawsuit Against the Insured
• When and How a Conflict Between the Insured and Insurer Affects the Insurer’s Right to Control the Defense
• The Insured’s Right to Independent Counsel
• The Insurer’s Ability to Withdraw From Coverage While Litigation Is Pending

Right to Information
• Underlying Defense Counsel’s Role and Duty of Loyalty
• Insurer’s Right to Information When Providing an Unqualified Defense
• Primary Carrier’s Right to Information When Providing a Defense Under Reservation of Rights
• Excess Carrier’s Right to Information When It Has Not Asserted a Coverage Position

Reasonableness of Attorney’s Fees
• Issues Around Who Decides What Attorneys’ Fees Are Reasonable and Necessary in the Underlying Lawsuit When Independent Counsel Is Utilized
• Use of Insurance Company Panel Firms/Rates When Defending Under Reservation and/or When Insured Has Independent Counsel
• Use of Insurance Company Billing Guidelines When Defending Under Reservation and/or When Insured Has Independent Counsel

Right to Control Settlement
• The Insurer’s Obligation and Right to Resolve Covered Portions of the Claim When There Are Covered and Non-Covered Claims
• Addressing Time-Limited Policy Limit Demands When There Are Covered and Non-Covered Claims
• Handling Mediations When There Are Covered and Non-Covered Claims

CLE (Please check the Detailed Credit Information page for states that have already been approved) ,NALA ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.

Jamie R. Carsey-Markel