Legal Question in Insurance Law in California

Re: What is cumus liability

Your insurance company has a duty to defend you and to try to settle your case without exposing you to liability over what your insurance will cover. Insurance companies hire competent attorneys who will work hard to defend you. If there is a threat that the case could exceed your insurance limits, the insurance company has a duty to so inform you and advise you to consult with your own attorney who can talk to you about the risks and making a request that your insurance company resolve the claim if they can within your limits. If they do not advise you of a potential conflict or the fact of the conflict being real, they may have a liability to you to protect you against an excess judgment.

When you are entitled to an independent attorney because of a conflict of interest, the insurance company should pay for the consultation and any subsequent charges you incur because of the conflict.

When a person is being sued and has insurance, the person should not feel at risk for losing more than the time to cooperate to resolve the claim.

People get seriously hurt when there is inadequate insurance more often that we would like to think. Even when a person is seriously injured, many attorneys try to recover all of the insurance that may apply but give the insurance company an opportunity to settle within the limits. If that happens and the insurance company does not warn you to get independent counsel, the case does not settle, and a judgment is entered for more than your limits, your insurance company may have a responsibility to you to protect you against the judgment. For that reason, if they warn you of the conflict, get the advice of a competent attorney when you get such notification.

Re: What is cumus liability

You need to contact your own attorney who will determine if there are conflicts, and under certain cirumstances the insurer must pay for your own attorney in addtion to its selected lawyer. Speak with your own attorney to explain how it could work, and do so as soon as possible.

Cumis was the name of an insurance company defendant in a case where the court required it to pay for the insured's own lawyer because of a conflict. So independent counsel started to be called Cumis counsel. I was in San Diego at the time and consulted on the case so I am familiar with the matter.