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Carrier Seeking Court Order to Avoid Defending Attorney From Capping Charges

By Greg Jones (Deputy Editor)

Monday, September 25, 2017 | 2314 | 0 | 35 min read

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...

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