If insurance coverage applies, the claims representative (attorney or adjuster) should proceed with extreme caution, usually under a reservation of rights
agreement, discussed and acknowledged by the accused.
Some insurers have the philosophy that reservation of rights
letters should be vague.
The Pennsylvania Supreme Court granted review to resolve the question of whether, where the insurer has defended the suit subject to a reservation of rights
, an insured can obtain coverage when it settles a lawsuit without the insurer's consent.
Under Mississippi law, the insurer would have had to allow the insured to select counsel because of the "built-in" conflict that is created by the insurer's reservation of rights
Approximately 4 months after the date of claim, the carrier issued a reservation of rights
letter allowing them to continue their investigation.
Unlike the majority, the author of the Concurring and Dissenting Opinion, would expressly limit the court's newly created exception to releases containing an express reservation of rights
in medical malpractice litigation.
Unlike a general defense under a reservation of rights
, a reservation of rights
and defense offered pursuant to the CAS applies only to a narrow category of cases, and has its own particular rules and regulations.
Try to make sure that the insurance company hires an attorney to defend you who has special expertise in handling your type of claim (and use the extra leverage that you may have as the result of receiving a reservation of rights
letter to try and insist on naming your own attorney).
8) Insurers that face a claim alleging that an insured physician negligently counseled a patient regarding firearms might choose to 1) defend or settle the action; 2) defend the action with a reservation of rights
(Under a reservation of rights
, the insurer provides a defense for the insured even if it thinks that it is under no obligation to do so, withdrawing a nd/or seeking reimbursement later if facts prove it to be correct.
If your carrier accepts your company's defense under a reservation of rights
, or reserves the right to assert coverage defenses in the future under some circumstance, you have the right to know how the carrier views the facts supporting each reservation.
Seemingly, any reservation of rights
, no matter how weakly worded or unconnected to the grant of rights, will inure a company from having to live up to its obligations in the future.
However, given the unique and anomalous relationship between tribes and the United States, and in particular the territorial situations created by the reservation of rights
on ceded lands, as well as by allotment and termination,(225) the Court has not always used territoriality as a bright line marker in analyzing questions of tribal authority.