Reservation of Rights


Summary

This practice note discusses the reservation of rights letter which must be drafted and issued in accordance with state statutory and decisional laws. Information that should be contained in a reservation of rights letter will be discussed as well as considerations that will ensure the reservation of rights letter is issued properly and best practices when preparing a reservation of rights letter. Further, this practice note addresses when a reservation of rights letter creates a conflict of interest that requires the insurer to offer the right to independent counsel.