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Written by: Tracey Jones
The tripartite relationship refers to the relationship between the insurer, the insured, and the attorney arising out of the insurance contract. Each party to the relationship has their own respective duties and roles, which will be discussed in turn. In litigation, it is critical for each member of the tripartite relationship to understand its role and responsibilities. .
*The role between the insured and the insurer is defined by the insurance contract, with any ambiguities being interpreted by the courts in favor of the insured.
The tripartite relationship is formed with the primary objective of achieving a successful result in litigation. This relationship, while seemingly simple on the surface, can create numerous, and often complex questions depending on the peripheral goals and interests of the parties, which are not always mutual. Understanding the roles and each role’s responsibility is critical throughout the claims process.
[1] N.C. Admin. Code, Tit.27, Ch2, Canons I-VIII.