Upon receiving an insurance claim from its policyholder, an
insurer is obligated to promptly and reasonably investigate,
adjust, and determine whether to pay a claim. Those are fundamental
aspects of an insurer's business that arise with respect to
every claim. Reports by insurance investigators or adjusters,
prepared during the processing of a claim, are discoverable as made
in the regular course of the insurer's business.
Insurers frequently allege that attorneys working for the
insurers perform or assist with the claim investigation or
adjustment and then assert privilege in an effort to avoid
producing such reports during litigation. Policyholders should be
wary of any such assertion and consider case law from across the
country compelling insurers to produce claims handling documents
(and related testimony) generated by or in connection with insurer
coverage counsel. Many courts hold that the decision to have
lawyers undertake or be involved in basic claims
