See the full video at https://youtu.be/NOylKfx7tMo  There seems to be a growing trend in the US where insurers are raising damages against lawyers who are retained to defend their insured. When an insurance company retains a defense attorney to represent their insured only to discover that they are incompetent or committed deficiencies in providing the defense, rather than acknowledging the error in choosing a bad attorney for the insured, the insurer sues the attorney for misconduct and seeks compensation for the amount is paid to replace the insured.
When the insurer retained defenders and there was no reservation of rights, courts have allowed the primary insurance company to sue the lawyer for malpractice and found that the lawyer represents the insurer, together with the insured, where they have common interests.
The insurance industry must manage its potential exposure to suits brought against them by insurers who ask them to defend the insured. This should make defenders re-evaluate the limits of their mistreatment policies and understand all potential parties who can make a claim against them. They must also choose defenders with the utmost care and diligence, as they may not be able to sue their chosen defender if a mistake occurs. Insurers must also ensure that the lawyers representing their interests provide appropriate information to the insured's independent lawyer.
Great American tried to sue his defender to provide an incompetent defense to one of its insured in Great American Insurance Co. v.Dover, Dixon Horn . The Eighth District Court brought relief to the field of insurance coverage when it refused to allow the insurer to successfully sue the lawyer – who was retained to defend an insured – for legal malpractice. Arkansas law only allows wrongdoing to be filed against those with whom the parties are in private.
© 2020 – Barry Zalma
Barry Zalma, Esq., CFE, now limits his practice to employment as an insurance consultant. specializes in insurance coverage, insurance claims handling, unfaithful insurance and insurance fraud almost equally for insurers and policyholders. He also acts as an arbitrator or mediator for insurance-related disputes. He practiced law in California for more than 44 years as an insurance coverage and claims lawyer and more than 52 years in the insurance industry. He is available at http://www.zalma.com and firstname.lastname@example.org.
Mr. Zalma is the first recipient of the first annual Claims Magazine / ACE Legend Award.
For the past 53 years, Barry Zalma has devoted his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to enable insurance companies and their claims staff to become insurance claims personnel.
https://zalma.com/zalmas-insurance-fraud-letter-2/ Last read two issues of ZIFL here.
Go to Barry Zalma videos on Rumble.com at https://rumble.com/c/c-262921  Read posts from Barry Zalma at https://parler.com/profile / Zalma / posts  Listen to the podcast: Zalma on Insurance https://anchor.fm/dashboard/episodes Zalma on Insurance
Go to Barry Zalma on YouTube – https://www.youtube.com/channel / UCysiZklEtxZsSF9DfC0Expg] / [1965900Gotoinsuranceclaimslibrary-https://zalmacom/blog/insurance-claims-library/
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