Ethics of Insurance Defense Under ROR: Model Rule 1.7, Conflicts, and Insured's Right to Independent Counsel

This CLE webinar will discuss how policyholders, insurers, and panel counsel determine whether a reservation of rights (ROR) creates a disqualifying conflict of interest for panel counsel at various stages of the case, the possible consequences if a conflict exists, and will then offer guidance and best practices for insurers and policyholders. The program will discuss roles in the tripartite relationship, defense counsel's ethical obligation if a conflict arises, and examples of disqualifying conflicts in various jurisdictions.

When an insurer agrees to defend its policyholder but under an ROR to later litigate or deny coverage, a particularly delicate and dynamic tripartite relationship is created. What appears to be a harmonious situation may not be and a harmonious situation may not stay that way. Defense counsel has an obligation to monitor if disqualifying conflicts of interest exist and take appropriate action.

What constitutes a conflict within the context of the tripartite relationship is often hotly contested. The case law continues to develop and no less than 50 American jurisdictions have issued rulings on these important issues.

An ROR will necessitate panel counsel to evaluate many ethical duties: undivided loyalty (Rule 1.7), disclosure (Rule 1.4), confidentiality (Rule 1.6), and limitations on compensation from insurers (Rule 1.8).

Listen as this esteemed panel examines the scope of the appointed defense counsel's ethical obligations, discusses the insured's right to independent counsel, reviews emerging issues in independent counsel litigation, and offers best practices for policyholders and insurers.