Does a reserving insurer have an obligation to retain competent defense counsel who fully informs and loyally represents the insured?
California, United States of America
The following excerpt is from Dynamic Concepts, Inc. v. Truck Ins. Exchange, 61 Cal.App.4th 999, 71 Cal.Rptr.2d 882 (Cal. App. 1998):
8 See also Tank v. State Farm Fire & Cas. Co. (1986), 105 Wash.2d 381 715 P.2d 1133, 1137-38 (imposing "enhanced" obligation of fairness on reserving insurers to retain competent defense counsel who fully informs and loyally represents the insured and who refrains from any action that demonstrates a greater concern for the insurer's financial interests than for the insured's potential exposure.)
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