A lawyer is negotiating a settlement on behalf of a client and the opposing party's attorney asks: 'Does your client have insurance coverage for this claim?' The client has told the lawyer to deny coverage. Under the Model Rules, the attorney:
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A
Must deny coverage per the client's instruction
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B
May not make a false statement of fact and should decline to answer or withdraw
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C
May deny coverage because settlement negotiations are not 'proceedings'
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D
Must disclose the insurance because it is material to settlement