February 22, 2016 Top Story

Independent Counsel Required for Insurers to Avoid Conflicts

Insurer's reservation of rights may create conflict

Matthew S. Mulqueen

An insurer must provide independent counsel for its insured when a conflict of interest arises between the insurer and the insured. State Farm Mut. Auto. Ins. Co. v. Hansen. The court’s decision in Hansen, requiring independent counsel when an insurer asserts a reservation of rights that creates a conflict of interest, represents a growing trend across the country.

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