14.18.4 Re-Litigation of Underlying Claims.

JurisdictionArizona

14.18.4 Re-Litigation of Underlying Claims. Although insureds’ claims against insurance producers are assignable,259 an insurance producer is not bound to the result in the underlying tort action between a third-party claimant and the insured unless the insurance producer was made a party to that lawsuit.260 Webb makes clear that an insurance producer is not precluded from re-litigating the issues in the underlying tort case after a claim was assigned.261 The court there stated that, unlike an insurer, an insurance producer generally has no contractual duty to defend and indemnify the client.262 Thus, absent a pre-existing duty to defend and indemnify, there is no basis for concluding that insurance producers should be bound by stipulated judgments to which they were not parties.263 Principles of issue preclusion suggest that the insurance producer would be “barred from re-litigating an issue only if, among other things...

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