This blog blurb by Ken Shigley discusses the three-way conflict between defendant, its attorney and the carrier, in the context of choices and legal malpractice.

"Where the insurance company has refused to take advantage of opportunities to settle a claim within policy limits, the plaintiff wins a judgment for some multiple of the policy limits, and the insured is on the hook for the excess, the insurance defense lawyer should exercise great caution. If the plaintiff’s attorney asks for contact information to communicate directly with the insured defendant’s corporate or coverage counsel regarding the insured’s interests vis-a-vis the insurance company, the insurance defense lawyer should either facilitate that communication or report a potential malpractice claim to his own legal malpractice insurance company"