Analysis of the Claim

• The first step that an insurance company's legal counsel must take to produce an opinion letter is to analyze the facts of the claim. When a person who is covered by an insurance policy files a claim, he will be required to state details and provide evidence supporting his claim. The insurance company's legal counsel reviews this information and it becomes the basis of the company's opinion letter.
  
  

Relevant Policy Provisions

• The next step in the process of forming an insurance coverage opinion letter is for the insurance company's legal counsel to review the insured's insurance policy to determine which, if any, of the provisions of the policy are relevant to the insured's claim. Typically, there will be a relevant provision contained within the policy that either provides for coverage or disqualifies the insured from coverage.
  
  

Current Status of the Law

• Often the provisions contained within an insurance policy may require outside legal interpretation. In such cases, the insurance company's legal counsel will research state and federal statutes, as well as case law opinions, to determine how the law of the jurisdiction applies to the coverage analysis.
  
  

Potential Liability Exposure Conclusion

• The final step in the process of creating an insurance coverage opinion is to compile a written report that contains the facts of the claim, relevant policy provisions and the applicable law. The final conclusion contained in the opinion will inform the insurance company whether it must provide insurance coverage to the insured or how to defend against a lawsuit that was filed against the insured.