Course Description

Reservations of Rights Letters

The Reservation of Rights Letters course is designed to familiarize adjusters and litigators with important aspects of preparing reservations of rights letters.  The module is presented by attorneys Veronica M. Bates of Hermes Sargent Bates, L.L.P. and Renee C. Callantine of Chapman Popik & White L.L.P.

Writing an effective reservation of rights letter is a crucial skill for claims professionals that enables them to adequately notify the insured of the insurers rights and avoid waiver and estoppel.  In this two hour course, the instructors outline the law regarding the requirements for reservations of rights letters and provide a checklist for authoring and evaluating these letters.  The instructors also discuss options on how to proceed if an insured rejects a reservation of rights.

After completing the course, the attendee will be able to explain the circumstances that give rise to the need for a reservation of rights letter; distinguish between a reservation of rights and a non-waiver agreement; discuss the importance of timeliness; list the elements of a good reservation of rights letter such as accurate policy identification, the purpose of the letter, summary of pleadings, appropriate policy language, defenses reserved, request for continued cooperation, insured's right to personal counsel, insurer's rights in the event reservations prove to be founded, conflicts of interest raised, and rights to independent counsel.  The attendee will be able to describe what not to put in the letter; explain the effects of an inadequate, bad, or untimely letter, and list options available if an insured rejects a reservation of rights letter.

The course is designed for practitioners and insurance professionals working in the area of insurance coverage disputes and litigation.  Professionals in both the liability and property arena will find this module beneficial.