Check out my next installment of articles for my Good Morning Wilton. It discusses issues that individual insureds should keep an eye on when their interests are represented by counsel funded by a liability insurer. Connecticut takes a minority approach (known as the “single client” rule) to resolving conflicts that arise in this context. New York follows the majority rule recognizing the so-called “tripartite relationship” among the insurer, insured and defense counsel.
…an insured is often left to wonder what party the lawyer represents. From the insured’s standpoint, this can create confusion about critical issues, e.g., who is the decision-maker; and who has input about litigation strategy, costs and settlement? The insurer may tell the insured it is “reserving rights” to disclaim [deny] coverage; what if some of the claims the lawyer is defending are covered while others are not, or the case reveals information that could raise questions about coverage? And, what are the contours of the attorney-client privilege?
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