Chi of Alaska, Inc. v. Employers Reinsurance Corp.

In its decision today, the court holds-that an insured has the right to reject the counsel appointed by the insurer and to unilat*1122erally select replacement counsel whenever dual representation creates a potential conflict of interest. Under the guise of balancing the interests of the insured and the insurer, the court completely abrogates the insurer’s right to participate in the insured’s defense. Neither existing case law nor sound policy mandates such a drastic curtailment of the insurer’s contract rights. Although I agree that the insured is entitled to select independent counsel in…