Mar 21, 2024

Responding to Insurance Subpoenas: Policyholder Rights

Responding to Insurance Subpoenas: Policyholder Rights and Legal Requirements

Understanding Your Rights When Insurance Companies Issue Subpoenas

Getting a subpoena from an insurance company can be scary. What do they want? What are my rights?

This article will explain what to do if you get a subpoena from an insurance company.

What is a Subpoena?

A subpoena is a legal document that requires you to provide information or documents to the court or other legal entity. According to the American Optometric Association, a subpoena is a “legal document issued by a court or other lawful authority compelling an individual or organization to provide testimony, documents, or other evidence in a legal proceeding.”

Insurance companies issue subpoenas when they need information for an investigation or lawsuit. The subpoena will tell you what information or documents they need and when they need it by.

Do I Have to Comply?

Legal Obligations and Potential Consequences

In most cases, yes. According to Federal Rule of Civil Procedure 45, failure to comply with a subpoena can result in contempt of court charges.

If you don’t comply, the insurance company can ask the court to force you to comply. That can lead to big fines or even jail time for contempt of court. So it’s usually best to comply, but there are some cases where you may be able to challenge the subpoena.

Get Legal Help

These cases can get complicated, so it’s a good idea to get legal help responding to a subpoena. A lawyer can review the subpoena and determine if you have to comply, or if there are grounds to challenge it.

Engaging with legal counsel is crucial to understand and follow these laws, procedures, and regulations when responding to subpoenas to avoid legal consequences such as sanctions, fines, or contempt of court.

They can also help negotiate with the insurance company about what you have to provide.

Review What They’re Asking For

Carefully Examine the Subpoena Requirements

Carefully review everything the subpoena is asking for. Make sure you understand what documents, records, or testimony they want.

The University of California Berkeley’s Office of Legal Affairs notes that there are three kinds of subpoenas:

• Witness Subpoena: requiring court appearance and testimony
• Subpoena Duces Tecum: requiring production of documents
• Deposition Subpoena: requiring both testimony and documents

If anything is unclear, ask the lawyer to get clarification from the insurance company.

Gather Responsive Documents

Once you know what they want, gather all responsive documents. This may include emails, reports, notes, or other records. Make sure to search thoroughly – don’t destroy or hide anything they’ve requested.

Review for Privileged Info

Have your lawyer review the documents before producing them. They can identify any privileged or confidential information that should not be disclosed without a court order.

According to MICA Insurance, when dealing with medical records, “HIPAA permits physicians, practices, and other covered entities to disclose patients’ medical records in response to a court order (without authorization from the patient).”

Negotiate a Protective Order

Protecting Confidential Information

If you have to turn over confidential business records or trade secrets, ask the lawyer to negotiate a protective order.

According to Federal Rules guidance, courts can “quash or modify the subpoena if compliance would be unreasonable or oppressive” or if it requires disclosure of privileged or protected information.

This legally requires the insurance company to limit access to sensitive information.

Produce Documents

Work with your lawyer to safely and securely produce the documents by the deadline. Follow proper procedures for labeling, Bates stamping, and format.

Testify Truthfully if Required

If you have to testify, tell the truth. Get prepared with your lawyer so you know what to expect. Answer only the questions asked, and don’t volunteer extra information.

Talk to Your Insurance Company

Understanding Insurance Coverage for Subpoena Response

Contact your insurance company about coverage. Many policies cover legal costs for responding to subpoenas.

According to The D&O Diary, “existing insurance policies might provide coverage for these defense costs – even if these policies do not expressly address subpoenas.”

Key coverage considerations include:

• Directors & Officers (D&O) policies often cover subpoena response costs
• Many courts recognize subpoenas as “claims” under insurance policies
• Coverage may include attorney fees, document production costs, and expert witness fees

Your insurance may pay the lawyer fees.

Don’t Go It Alone

Professional Legal Assistance is Essential

Subpoenas can be complicated, so get help from a lawyer.

They can protect your rights and make sure you comply properly. This will reduce your risk and liability.

Insurance Policy Review Tips

When reviewing insurance coverage:

1. Check if subpoenas are defined as “claims” in your policy
2. Look for “non-monetary relief” language in the claim definition
3. Review notice requirements – prompt notice is critical
4. Consider whether the subpoena involves a “wrongful act”

With the right legal help, you can get through the subpoena process smoothly. Know your rights and obligations, and you’ll be prepared.

References

How to Respond to a Subpoena: 10 Things You Should Do Immediately. Orrick

Do Insurance Policies Cover the Cost of Responding to Subpoenas? Anderson Kill

Proceed Carefully If You Receive A Subpoena. IIABA

An Insurance Company Must Respond To A Subpoena Involving Ongoing Third-Party Litigation. Nevada Insurance Law

D&O Insurance May Cover Government Subpoenas. Jones Day

Responding to Insurance Subpoenas: Policyholder Rights