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American Insurance Association v. Kentucky Bar Association

917 S.W.2d 568 (1996)

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American Insurance Association v. Kentucky Bar Association

Kentucky Supreme Court

917 S.W.2d 568 (1996)

Facts

American Insurance Association and others (collectively, American Insurance) (plaintiffs) moved for review of an ethics opinion issued by the Kentucky Bar Association (defendant) prohibiting a lawyer from entering into a contract with an insurer in which the lawyer agreed to do all of the insurer’s defense work for a set fee (E-368). State Farm Mutual Automobile Insurance Company and State Farm Fire and Casualty Company (State Farm) (plaintiffs) requested review of an ethics opinion that prohibited insurance companies from using in-house salaried attorneys to provide defense services under the insurers’ policies of insurance (U-36). The actions were consolidated for review by the Kentucky Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Stumbo, J.)

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