Because of an automobile accident that I was involved in, there have been legal proceedings initiated against me. It is part of the argument against me that I was careless and that I purposefully did other things that were wrong.
The insurance provider informed me that I have the authority to retain my own legal representation and provided me with a letter titled “reserve of rights.”
I was really expecting that you could explain to me how to proceed with this matter.
Insurance May Cover Legal Expenses If You’re Drunk and Cause an Accident
One example of something that insurance will pay for is carelessness on your part. On the other hand, if you did something on purpose or even without giving it much thought, it is possible that your insurance policy is no longer valid.
For instance, if an individual is driving under the influence of alcohol and causes an accident, the insurance company might pay for legal representation, but only for claims that are covered and not for the DUI itself.
In certain circumstances, the insurance company “reserves its rights” to decide not to defend you (depending on what it learns in the future) or not pay some or all of your responsibilities.
This decision may be based on whether or not the insurance company is obligated to defend you. When something like this occurs, the insurance company faces a conflict of interest because of the situation.
After that, you will be able to retain your own legal counsel in addition to the one provided by your insurance provider.
It is possible that you will be able to convince the insurance company to pay for the time spent by your lawyer. This is also sometimes referred to as “Cumis counsel” (named after a California case).
Because of the specifics of your case, it is strongly recommended that you consult with a legal professional.
It’s possible that the insurance company’s chosen attorney will be able to offer you some guidance, but it’s important to keep in mind that the attorney is being compensated by the insurance company, which may have an impact on the guidance he or she offers.
What happens if I tell the insurance company that I don’t want them to settle the case? Can it still do so?
Under the provisions of some insurance policies, especially those that cover professional liability, the policyholder’s written acceptance of a settlement may be required in order to proceed with the settlement. The vast majority of insurance policies do not have this clause.
To sum up, even if you do not want your insurer to settle the claim, it is still possible for it to do so; nevertheless, it is required to do so in good faith. Your insurance provider will not knowingly do anything to put you in harm’s way in any way.
On the other hand, if you wish to settle with the carrier but they are unwilling to do so, you are not required to do so. After that, you might make the decision to defend yourself all by yourself.