The Enterprise Model of Managing Conflicts of Interest in the Tripartite Insurance Defense Relationship

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The business reality for lawyers hired by insurance companies, the contractual limitations placed on the scope of their representation of the policyholder-client and the limited options such attorneys would face in the event of the loss of insurance company business increases the risk that the attorney’s long-term retention will place the lawyer’s own pecuniary self-interest in conflict with his policyholder client. Any appropriate ethical review of an insurance tripartite relationship must require the inclusion of this pecuniary interest factor. Such review and evaluation requires a neutral arbiter — the courts themselves — to determine whether a conflict exists.

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Cardozo Law Review

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