Perspective
Sep. 22, 2011
Must insurers pay in full after the insured wins the coverage fight?
Dealing with insurers who boldly refuse to pay defense costs based solely on the bill's format. By Joan M. Cotkin of Nossaman LLP
When can an insurer employ a "fee auditor" to justify paying less than the full amount of the covered defense fees? Probably only when the insurer is otherwise defending. Can insurers refuse to defend and still nickel and dime the bills with their favorite fee auditor? Probably not. The ancient case of Gray v. Zurich Ins. Co., 65 Cal. 2d 263 (1966), which is based on the even older case of Arenson v. National Auto Cas. Co.
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