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Legal Cost Insurance as a Strategic Device

  • Kirstein, Roland

Legal Cost Insurance (LCI) is not only a device to reallocate risk, but also to enhance an insured's position in a settlement negotiation. The paper points out that this function of LCI is especially important in cases that have a negative expected value for potential plaintiffs. Hence LCI is of interest even for risk-neutral customers.

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Paper provided by Saarland University, CSLE - Center for the Study of Law and Economics in its series CSLE Discussion Paper Series with number 97-11.

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Date of creation: 1997
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Handle: RePEc:zbw:csledp:9711
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