Can a lawyer practice law and also work as an insurance adjuster?

Plain-English summary

A lawyer asked about running a law business and also acting as an insurance adjuster. The committee was of the opinion that while it is possible to ethically maintain dual professions, the risk of violating the Rules of Professional Conduct is high.

The committee identified the rules that apply. Under RPC 1.6, client confidences and secrets must be preserved, and the lawyer must make clear to clients when an attorney-client relationship exists and when it does not; when the lawyer is known in the community as an attorney, the committee said there is an affirmative duty to disclose in what capacity he is acting. The committee also said the lawyer must separate the law practice from the other business sufficiently so the two do not appear to operate together or to be related in any way, that the rules against improper solicitation in RPC 7.1, 7.2, and 7.3 apply, and that the lawyer cannot represent the same client both as an attorney and as an insurance adjuster.

Currency note

This opinion was issued in 1995, before the Washington State Bar Association's adoption of the 2006 revisions to the Rules of Professional Conduct. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement mentioned here. RPC 1.6, 1.7, 1.8, 7.1, 7.2, and 7.3 correspond to the same-numbered ABA Model Rules on confidentiality, conflicts of interest, and communications, advertising, and solicitation.

Common questions

Q: Can a lawyer also work as an insurance adjuster?

A: The committee said dual professions can be maintained ethically, but the risk of violating the rules is high, and the lawyer must observe RPC 1.6, 1.7, and 1.8.

Q: Can the lawyer-adjuster handle the same client in both roles?

A: No. The committee said the lawyer cannot represent the same client both as an attorney and as an insurance adjuster.

Q: What must the lawyer disclose?

A: The committee said that when the lawyer is known in the community as an attorney, there is an affirmative duty to disclose in what capacity he is acting, and to make clear when an attorney-client relationship exists and when it does not.

Background and rules framework

The opinion applied RPC 1.6 (confidentiality), RPC 1.7 and RPC 1.8 (conflicts of interest), and RPC 7.1, 7.2, and 7.3 (communications about services, advertising, and solicitation), each corresponding to the same-numbered ABA Model Rule. The committee framed dual practice as permissible in structure but constrained by confidentiality, conflict, disclosure-of-capacity, business-separation, and solicitation requirements.

Citations and references

Rules of Professional Conduct:

• ABA Model Rule 1.6 (confidentiality); Washington RPC 1.6
• ABA Model Rule 1.7 (conflicts of interest); Washington RPC 1.7
• ABA Model Rule 1.8 (specific conflict rules); Washington RPC 1.8
• ABA Model Rules 7.1, 7.2, 7.3 (communications, advertising, solicitation); Washington RPC 7.1, 7.2, 7.3

See also

• WA Ethics Op. 1598: Dual Practice as Lawyer and CPA
• WA Ethics Op. 1506: Dual Professions, Lawyer and Another Discipline

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=683

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

Advisory Opinion: 1599
Year Issued: 1995
RPC(s): RPC 1.6; 1.7; 1.8; 7.1; 7.2; 7.3
Subject: Dual professions; law practice and insurance adjuster

The Committee reviewed your inquiry concerning conducting a law business and also acting as an insurance adjuster. It is the Committee's opinion that while it is possible to ethically maintain dual professions, the risk of violating the Rules of Professional Conduct is high.

When engaging in more than one business, you must be mindful of RPC 1.6, 1.7, 1.8. Pursuant to RPC 1.6, client confidences and secrets must be preserved, and you must make clear to your clients when an attorney/client relationship exists and when it does not. When you are known in the community as an attorney, you have an affirmative duty to disclose in what capacity you are acting.

You must separate your law practice from the other business sufficiently so that the two do not appear to operate together or to be related in any way. The rules against improper solicitation, including RPC 7.1, 7.2 and 7.3 also apply. You cannot represent the same client both in your role as an attorney and as an insurance adjuster.