reservation of rights


Also found in: Acronyms.

reservation of rights

Health insurance A term referring to a situation arising when there is a question as to whether a medical service is covered; usually the insurer is obliged to defend a claim while a coverage issue between insurer and policyholder is being resolved
References in periodicals archive ?
A survey of courts around the country shows the majority now refuse to allow insurers to recoup settlement or defense fees for defenses provided under reservation of rights.
In order to preserve its rights under the CAS, within 30 days of when it knew or should have known of the particular coverage defense, the carrier is required to issue a reservation of rights by certified mail to the named insured.
I found it interesting that two of the six insurers that thought that physician firearm counseling was covered under their policies nonetheless would seek reimbursement later by defending under a reservation of rights.
The principles below are based on the legal and policy principles examined in the previous sections--the canons of construction concerning the reservation of rights, including the reservation of a comanagement right, the doctrine of inherent tribal sovereignty, the United States trust responsibility toward tribes, the importance of a meaningful tribal role in decision making concerning reserved rights resources, the recognition and protection of tribal governmental authority off-reservation, and the court's reluctance to permit direct tribal regulation of non-Indians on non-Indian lands.
Likewise, an inadequate reservation of rights may be considered a waiver to contesting coverage.
Gene Weisberg, Gladstone Michel Weisberg Willner & Sloane, ALC, discusses methods for analyzing claim issues to determine what rights should be reserved, writing effective reservation of rights letters and addressing policyholders' responses thereto, consequences of inadequate letters, and who is entitled to select defense counsel depending on what rights are reserved.
Landlords should be advised that their conduct upon a tenant's abandonment of a premises may lead a court to determine it acted consistently with accepting a surrender without a reservation of rights.
You have now tendered your claim to the insurer and received a reservation of rights letter or a denial.
A reservation of rights defense is a means by which a liability insurance carrier agrees to protect and defend its insured against a claim or suit while reserving the right to further evaluate and perhaps even deny coverage for some or all of the claim.
Write the notice letter in consultation with your legal counsel, because wording can make a difference in whether the insurance company accepts or rejects the claim or agrees to defend under a reservation of rights.
In May 2008, only one of the insurers, Lexington insurance, agreed to defend MGA under a reservation of rights.
D&O -- Reservation of Rights Leaving You Exposed