Insurance lawyers get conflict, firm name guidance.

Recommendations from a special Bar committee that studied ethics rules for attorneys hired by insurance companies to represent policyholders have been approved by the Florida Supreme Court.

They include that insurance company staff attorneys can practice under a traditional law firm name, as long as one person named in the firm title has supervisory responsibility over the staff lawyers. The new rule, though, requires that all such letter-head, business cards, and such state that the lawyers are employed by the insurance company and function independently of the insurance company.

The Special Commission on Insurance Practices II looked at conflict issues facing attorneys doing defense insurance work, and related questions, including the desire for insurance staff counsel to use a firm-like name. Its findings were endorsed by the Board of Governors last year.

On the conflict issue, the court approved adding subsection (e) to Rule 4-1.7. It reads: "Representation of Insured. Upon undertaking the representation of an insured client at the expense of the insurer, a lawyer has a duty to ascertain whether the lawyer will be representing both the insurer and the insured as clients, or only the insured, and to inform both the insured and the insurer regarding the scope of the representation. All other Rules Regulating The Florida Bar related to conflicts of interest apply to the representation as they would in any other situation."

This paragraph was also added to the comment on the rule: "The unique tripartite relationship of insured, insurer, and lawyer can lead to ambiguity as to whom a lawyer represents. In a particular case, the lawyer may represent only the insured, with the insurer having the status of a non-client third-party payer of the lawyer's fees. Alternatively, the lawyer may represent both as dual clients, in the absence of a disqualifying conflict of interest, upon compliance with applicable rules. Establishing clarity as to the role of the lawyer at the...