Twin City Fire Insurance v. Ben Arnold-Sunbelt Beverage Co.

Affirmed by published opinion. Judge DEVER wrote the opinion, in which Judge LUTTIG and Senior Judge HAMILTON joined.

OPINION

DEVER, District Judge.

When a party with insurance coverage is sued, the insured notifies the insurance company of the suit. The insurance company, in turn, typically chooses, retains, and pays private counsel to represent the insured as to all claims. If the suit involves some claims that are covered under the insurance policy and some claims that are not covered, the insurance company typically will send a reservation of rights letter to the insured stating what claims…