Introduction

 Traditionally, insurers have hired independent, outsidelawyers or law firms to represent their policyholders. Recently,however, a disturbing trend has emerged: some insurance companieshave started to use their own in-house attorneys or ``captive’’ lawfirms to defend policyholders.1 Although insurers tout the cost-savingbenefits that this type of arrangement may provide, they tend toignore the serious ethical and professional considerations that canarise from it.