As insurance coverage attorneys and insurance carriers' in-house counsel are keenly aware, the Reservation of Rights letter is a standard, and at times mundane, letter that triggers the often long journey of determining whether an insurer will provide or decline coverage to an insured.

While usually seen as a standard, boilerplate letter, attorneys must be cognizant of the obligations imposed on them across the states to ensure that a Reservation of Rights letter complies with each state's specific requirements on the timing of delivery of the letter and the content of the letter to preserve its defenses and avoid prejudicing the insured. This article examines opinions from courts across various states and their impact on the obligations imposed on insurers when drafting a Reservation of Rights letter. Additionally, this article will address the potential consequences that may arise from a poorly drafted Reservation of Rights letter.