Please Allocate for Buss Claim

MODEL LETTER

Maybe –

Please Allocate for Buss Claim

 

USE NOTES: This letter may be appropriate if the insurer has sent a reservation of rights letter asserting a Buss defense cost reimbursement claim.

Before sending the text below, delete everything above this line.

 

 

&Date&

 

&IndependentCounsel&

Address

City, State Zip Code

 

Re:       &Plaintiff& v. &Client&

Your File No. ___

 

Dear &IndependentCounsel&:

As you know, &InsCo& has agreed to defend me in the &Plaintiff& v. &Client& lawsuit [and has agreed  or [I will be asking them] to pay you on my behalf to represent me.

 

The promise &InsCo& made in its policy to defend runs to me, not to you. This letter will serve to notify you and &InsCo& that you have my consent to send your invoices directly to &InsCo& and to receive and deposit their checks. I understand that invoices not paid within 30 days will bear interest at the rate of 10%.

 

&InsCo& asserts a claim against me for reimbursement of defense fees and costs it pays to you. Would you please prepare detailed monthly invoices to submit to &InsCo& allocating those defense costs chargeable solely to the claims that are not even potentially covered. I realize that this task will require you to analyze coverage and make real-time decisions about my coverage as you are conducting my defense. Since this work is required by &InsCo&’s assertion of a reimbursement claim against me, please identify and include these charges in you invoices to &InsCo&.

 

 

&Client&

 

cc: &ClmAgt&

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