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Insurance

Oct. 21, 2009

Reservation of Rights Does Not Mandate Independent Counsel

Philip Thompson of Nelsen, Thompson, Pegue & Thornton expands on when insurers must pay independent defense costs.

INSURANCE

By Philip Thompson

Twenty-two years ago, the Legislature enacted Civil Code Section Section 2860 to address the abuses that arose following publication of the San Diego Navy Federal Credit Union v. Cumis Insurance Society, Inc., 162 Cal. App. 3d 358 (1984) decision. Since then, Section 2860 has proved effective in reducing those abuses and courts have provided meat to its legislative bones. Still, some confusion remains regarding its a...

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