Draft an information letter to the client, Mr. Daniel Hope, Vice President, National Insurance Company. In the letter, summarize the state law concerning Nationals duty to defend persons it insures under its automobile insurance policies. Draft the letter for the signature of your supervising attorney, Alice Black. Use the letterhead presented in the Application section of this chapter. National Insurance Company's address is 459 Twenty-Second Street, Friendly,
NW, 00065. There is no statutory law governing an insurance company's duty to defend its insured. The relevant case law follows.
Case Law: Wrickles v. Washington Ins. Co., 61 N. Wash. 104 (Ct. App. 2008). Where it is determined that the insurer has unjustifiably failed to defend against claims against its insured, the insurer is liable for any judgment entered against its insured. In addition, the insurer may be liable for any reasonable settlement entered into by the insured.