Defense Under Reservation of Rights: The Right to Independent Cumis Counsel

  Generally, when defense of a lawsuit is tendered to an insurer, the insurer has the right to appoint counsel for the insured and control the defense. In such circumstances, appointed counsel owes both the insured and the insurer a duty of care and allegiance. Where, however, there are “divergent interests” between the insurer and the insured, the insured is entitled to independent counsel paid for by the insurer. Continue reading