Also known as:insurance defence · insurer defense · insurer's defense · defense counsel
Written by attorneys · grounded in primary & secondary sources — see below
An arrangement in which an insurer retains and compensates counsel to represent its insured in litigation. The insured remains the client even though the insurer pays the fees and may control strategic decisions. When the insurer is not itself a party, the payment structure creates a risk of third-party interference with the lawyer-client relationship.
Sources & Authorities
How it applies
Common Examples
2
Perjury Refusal in Insured Assault Case
Ibrahim Iqbal, the insured, tells his insurance defense lawyer that he intends to testify falsely about the timing of an altercation to avoid an intentional-act exclusion. The lawyer, retained and paid by Ideal Solutions Insurance, first urges Ibrahim to tell the truth and then informs the court of the intended perjury when dissuasion fails. The court permits the lawyer to withdraw from further participation in the false testimony without violating the insured's right to effective assistance.
Evidence Location in Property Damage Suit
Ines Ibarra, the insured homeowner, tells her insurance defense lawyer the location of a removed structural beam that plaintiffs claim caused their injury. The lawyer, paid by Innovate Pharmaceuticals' liability carrier, observes but does not move the beam. Prosecutors later obtain the beam's location from police investigation rather than from the lawyer, preserving the privilege over the client communication while allowing access to the physical evidence.
Put it into practice
Test Yourself
10
Practice Questions5
· 10 primary sources
Select any source to read its text and confirm it supports the definition.
Cases
Federal Rules
Course Outlines
Common questions
Frequently Asked
3
Who is the client when an insurer hires defense counsel?+
The insured is the client. The lawyer owes duties of loyalty and confidentiality to the insured even though the insurer pays the fees and may direct aspects of the defense.
Supporting sources
Does payment by the insurer create improper third-party interference?+
Payment alone does not constitute improper interference. The arrangement is permitted, but the lawyer must ensure that the insurer's involvement does not compromise the lawyer's independent professional judgment on behalf of the insured.
Supporting sources
What happens when coverage issues create a conflict between insurer and insured?+
The lawyer must not allow the insurer to use information obtained in the defense to deny coverage. Separate counsel for the insured may be required if the conflict becomes actual and material.
Supporting sources
Real PropertyTitles · Recording actsNEXTGENIntermediate