San diego navy federal credit union et al., Plaintiffs and Respondents, V. Cumis insurance society, inc., Defendant and Appellant Civ. No. 31043 Court of Appeal of California, Fourth Appellate District, Division One


Insurance Law > Claims & Contracts > Fiduciary Responsibilities



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Insurance Law > Claims & Contracts > Fiduciary Responsibilities

Insurance Law > General Liability Insurance > Conflicts of Interest

[HN7] In actions in which the insurer and insured have conflicting interests, the insurer may not compel the insured to surrender control of the litigation. If the insurer must pay for the cost of defense and, when a conflict exists, the insured may have control of the defense if he wishes, it follows the insurer must pay for such defense conducted by independent counsel.



Insurance Law > General Liability Insurance > Conflicts of Interest

[HN8] A coverage dispute between insurer and insured creates a conflict of interest.



Insurance Law > Claims & Contracts > Reservation of Rights > Independent Counsel

Insurance Law > General Liability Insurance > Conflicts of Interest

[HN9] A conflict arises once the insurer takes the view a coverage issue is present.






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