Chapter XI: Appendix of forms.

Initial Disclosure Letter for Full Coverage Representations

Privileged and Confidential Attorney-Client Communication

Dear Policyholder:

[NAME OF INSURANCE COMPANY] ("the insurance company") has retained me as defense counsel in [CAPTION OF LAWSUIT]. I have agreed to represent both you and the insurance company as my clients.

The insurance company will pay my fees, reimburse any expenses that I incur, and be in charge of the defense. This means that I will confer with the insurance company about matters relating to the lawsuit, that I will obtain its approval before incurring expenses and performing any substantial work assignments, and that I will look to it for instructions when important decisions have to be made. These matters are provided for in the insurance company's litigation guidelines, which I have agreed to follow. If you would like a copy of the guidelines, please feel free to ask.

My job is to defend the lawsuit against you. This means that I will try to minimize the amount of money the claimant recovers at trial. To do this job well, I may need information from you and other witnesses about the events on which the lawsuit is based. I will contact you if and when a need arises. Please understand that I must share with the insurance company any information relating to the merits of the lawsuit that I receive from any source, including you. I also am free to share everything I know with you. If you desire to know anything, just call or write and ask. Nothing that I learn about the merits of the lawsuit against you will be confidential for the insurance company or from you.

Part of my job is to evaluate the strengths and weaknesses of the claimant's suit against you, including the claimant's chances of winning and the amount of money the claimant is likely to recover if the claimant wins. I will gladly share my opinions on these matters with you as the lawsuit unfolds.

The insurance company has assigned responsibility for settling the claim against you to [INSERT NAME HERE], the claims professional who is in charge of your case. If an opportunity arises to settle the case within your policy limits, the claims professional may act on it directly or ask me to do so. Unless you tell me otherwise, I will assume that you are happy to have the case settle within the policy limits, in which event the insurance company will bear the entire cost. If you have questions about the progress of settlement negotiations or related matters, please ask the claims professional for information or contact me.

A civil lawsuit is an important matter. You should follow the lawsuit closely and respond promptly and accurately to any requests for information you receive from me. I will keep you abreast of the progress of the lawsuit and of the insurance company's decisions...