Ethical Obligations of a Lawyer Working Under Insurance Company Guidelines and Other Restrictions
A lawyer must not permit compliance with "guidelines" and other directives of an insurer relating to the lawyer's services to impairmaterially the lawyer's independent professional judgment in representing an insured. A lawyer may disclose the insured's confidential information, including detailed work descriptions and legal bills, to the insurer if the lawyer reasonably believes that doing so will advance the interests of the insured. A lawyer may not, however, disclose the insured's confidential information to a third-party auditor hired by the insurer without the informed consent of the insured. Moreover, if the lawyer reasonably believes that disclosure of the insured's confidential information to the insurer will affect a material interest of the insured adversely, the lawyer must not disclose such information without the informed consent of the insured.