A Reservation of Rights letter is sent by whom?

A Reservation of Rights letter is issued by the insurance company. This document is crucial in cases where the insurer acknowledges that a loss has occurred and is under investigation but reserves the right to deny coverage based on specific grounds later.

Sending this letter allows the insurance company to inform the policyholder and any involved parties that they are not waiving their right to contest coverage while the claim is being assessed. This is important for the insurer to protect its legal interests and ensure clarity regarding its position on the claim.

In this context, it's essential to recognize the multiple roles of the various parties involved. For example, while the insurance broker may assist in policy management, they do not typically issue legal communications such as Reservation of Rights letters. Likewise, the claimant's lawyer and the claimant themselves do not hold the authority to reserve rights on behalf of the insurance company; instead, they may respond to such communications or assert claims based on the coverage outlined in the policy. Thus, the insurance company is the correct sender of the Reservation of Rights letter, serving as a formal notification regarding coverage matters related to a claim.