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Defeating an Insurance Company's Claim of Privilege for Claims Materials

By Andrew Reidy and Kyle Cohen

In an insurance coverage dispute, it is crucial to gain access to the insurance company's claim files that reflect the insurer's investigation and handling of the claim. These materials are often the best source of information for determining whether an insurer fulfilled its contractual obligation to investigate and handle the claim in good faith. Because the ultimate success of a policyholder's claim may depend on how much of this information the policyholder is able to obtain, insurers often attempt to shield their investigations and claims handling behind the wall of the attorney-client privilege and/or the work product doctrine. However, courts largely have rejected efforts by insurance companies to use privilege as a shield to deny discovery of investigation and claims handling material or information.

The decisions in this area tend to revolve around two issues: 1) whether claims documents were created in anticipation of litigation or as part of the ordinary business of the insurer; and 2) whether an insurance company can withhold claims documents because the claims handler is an attorney. The common thread in each line of cases is that courts are reluctant to allow insurance companies to block discovery of claims material or information created prior to a coverage determination.

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