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Responding to Reservation of Rights or Claim Denials County, when this reservation of rights creates a conflict of interest between the insured's defense of the underlying lawsuit and potentially applicable coverage defenses, the carrier is obligated to appoint and pay for 8) Insurers that face a claim alleging that an insured physician negligently counseled a patient regarding firearms might choose to 1) defend or settle the action; 2) defend the action with a reservation of rights (Under a reservation of rights, the insurer provides a defense for the insured even if it thinks that it is under no obligation to do so, withdrawing a nd/or seeking reimbursement later if facts prove it to be correct. |
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