Carrier Seeking Court Order to Avoid Defending Attorney From Capping Charges

Insurance carriers are apparently reluctant to pay lawyers to defend policyholders who are accused of defrauding other insurers. Evanston Insurance Co. is asking a federal court to rule that it has no obligation to defend a Southern California applicants’ attorney accused of paying for client referrals as part of a capping scheme prosecutors estimate resulted in at least $300 million in losses. In a similar case, Sentinel Insurance Co. earlier this summer reached a settlement to resolve a bad-faith lawsuit over allegations that it refused to defend and indemnify a doctor accused of tak...