Bad Faith Litigation and Ignorance of the Law: Meeting an Insurer's Duty to Know the Law Without Losing Privileges

This CLE webinar will discuss an insurance company's duty to know the law, the duty to explain denial of claims, what an adequate and proper claim denial looks like, how these duties affect the assertion of privilege, and how to stem erosion of evidentiary privileges in bad faith litigation.

Claim adjusters must have at least a baseline understanding of the relevant state's law necessary to perform their duties of reviewing claims and explaining the reasons for denying a claim. Ignorance of the law will not save an insurer from a bad faith claim for improper denial. But adjusters must be careful not to engage in the unlicensed practice of law.

If adjusters lack this basic understanding of the law, they must seek out those with the requisite tools and knowledge, who are frequently claims coverage counsel. Current trends and decisions, however, have eroded insurers' ability to assert attorney-client privilege or the work product doctrine for coverage counsel's files, making them discoverable in the most mundane of cases.

Insurance companies should adopt proactive strategies to protect communications with attorneys whether those communications are written or oral, and whether challenged in written discovery or in deposition. Some of these strategies are most effective if they are deployed when the communication or file is made. Other strategies must be used when counsel is presented with a completed file after the fact.

Listen as this experienced panel discusses the insurance company's duty to know the law, the duty to explain denial of claims, what an adequate and proper claim denial looks like, and how to stem erosion of evidentiary privileges in bad faith litigation.