SS#2/SB 336 - This act requires that in any lawsuit involving a claim for which the defendant is insured, the insurer shall either clearly deny coverage, or notify its insured that it may later dispute coverage and that the insured may select counsel at the insurer's expense. If the insurer denies coverage, the insured may proceed to defend the suit. Otherwise, the insurer shall employ legal counsel to represent the insured. If the insurer desires to retain additional counsel of its own choosing to assist in the defense of the insured, it may do so at its own expense, in which case the insured may not settle the suit, or agree with the adverse party to allow a judgment to be taken, unless specifically authorized by the insurer.
JOAN GUMMELS