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Insurance

Jul. 24, 2006

Insurers Misuse Confidentiality to Obstruct Settlement Negotiations

Forum Column - What happens when an insurer defending an insured under reservation of rights refuses to participate meaningfully in mediated settlement negotiations?

Forum Column

By Richard L. Kellner and Michel Y. Horton



What happens when an insurer defending an insured under reservation of rights refuses to participate meaningfully in mediated settlement negotiations? In an anomaly of California law, the insured faces the following Hobson's choice: The insured can proceed to an unwanted trial, potentially suffer an adverse judgment, and then be obligated to reimburse the insurer for the defense cost...

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