The Tripartite Relationship in Insurance: Ethical Dilemmas and Coverage Complexities

Description

One of the primary concerns facing insurance defense counsel is the tripartite relationship between the attorney, the insurance company and the policyholder. The ethical concerns that arise in this relationship are unique and require careful thought and planning.

The dual client dilemma facing counsel retained by an insurance company to represent a policyholder raises many difficult issues, particularly the potential conflicts of interest when the interests of the policyholder and insurer are not aligned.

Listen as an authoritative panel of insurance law attorneys examines the conflicts of interest and ethical problems faced by the three parties, the coverage implications of the tripartite relationship, how the courts and state bars address the issues, and strategies for navigating the minefield of potential conflicts of interest.

Outline

1. Conflicts of interest
   1. Reservation of rights
   2. Claimed damages exceed coverage
   3. Representation of multiple parties
   4. Defense costs reduce available coverage
   5. Punitive damages
   6. Insurer tries to reduce expense by limiting discovery
   7. Disclosures to the insurer
   8. Policyholder’s failure to cooperate
   9. Control of settlement
2. Coverage implications
   1. Managed litigation practices/procedures
   2. Use of defenses—only token defense?
   3. Steering result to judgment under an uninsured theory of recovery
   4. Later use of confidential information by insurer to its advantage
   5. Settlement
3. Ethical rules and the state of the law
   1. Ethical rules
   2. State statutes
   3. Court treatment
   4. State bar associations
4. Strategies for navigating conflicts of interest
   1. Engagement letter
   2. Additional counsel at policyholder’s expense when claim or suit is in excess of limits
   3. Inform policyholder/additional counsel of all settlement negotiations/pertinent information
   4. Inform policyholder/additional counsel of counterclaims

Benefits

The panel reviewed these and other key questions: 

• What steps can counsel take to identify the conflicts of interest that arise as a result of the tripartite relationship?
• How is coverage impacted by the tripartite relationship?
• What strategies can counsel employ to navigate the conflicts of interest resulting from the tripartite relationship?
• What ethical guidelines are available to insurance defense counsel from state bars and the courts?

CLE Credit

Strafford seminars qualify for CLE credits in every state that accredits teleconferences. They offer you a high quality, cost effective, and convenient CLE option, with no lost travel time or expenses.

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