To request a manager review to issue a reservation of rights letter, what is the letter?

• A. A reservation of rights letter.
• B. An excess letter.
• C. A countersuit.
• D. A claim denial.

Answer: (A)

A reservation of rights letter is the document you issue when there may be questions about coverage but you want to continue defending the insured while preserving the insurer’s right to determine coverage later. It communicates that the claim is being investigated and that, although defense and investigation are proceeding, the insurer reserves the right to later deny or limit coverage if warranted. This is distinct from denying coverage outright, which would end the defense, or from other terms like an excess letter or a countersuit, which serve different purposes.