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“Declaration of Independence: When does a reservation of rights entitle an insured to independent counsel and control of its defense?”

On May 9, 2014 by Schnader

Jonathan M. Stern authored “Declaration of Independence” for the May 9, 2014 edition of Claims Management, published by the Claims & Litigation Management Alliance. The scenario plays out time and time again. An insurer agrees to undertake the defense of its insured, but for one or more reasons, it reserves the right not to indemnify the insured. The ramifications of the insurer’s decision to reserve rights can be very significant, but knowing what those ramifications are is often difficult.