Ins Co v Meridian Mut Ins Co, 230 Mich App 305, 310; 583 NW2d 548 (1998). In Meirthew, the duty of full disclosure arose because the same counsel represented both the insurer and the insured in the defense of litigation against the insured, but the insurer failed to disclose the specific policy conditions it would rely on to deny coverage in the event of an adverse verdict. Meirthew, supra at 36-38. Here, defendant responded to plaintiffs notices of “potential claim” by informing plaintiff that it was reserving its rights to deny coverage on the basis of all the terms and conditions of the policies. Plaintiff does not allege, nor can it establish, that justifiable reliance caused it prejudice. See Allstate Ins Co v Keillor (After Remand), 450 Mich 412, 416 n 2; 537 NW2d 589 (1995) (<HOLDING>). Further, it is plaintiffs failure to notify
holding that when the insurer takes the position that the policy does not cover the complaint the insurer must 1 defend the suit under a reservation of rights or 2 seek a declaratory judgment that there is no coverage if the insurer fails to take either of these actions it will be estopped from later raising policy defenses to coverage holding that an insurer can deny benefits based on late notice by the insured only when the insurer is prejudiced by the delay holding despite a reservation of rights that when the insurer provides a defense to its insured the insured has no right to interfere with the insurers control of the defense and a stipulated judgment between the insured and the injured claimant without the consent of the insurer is ineffective to impose liability upon the insurer holding that delayed notice relieves insurer of obligation to pay defense costs if it was actually prejudiced by delay holding that the insurer was not estopped from asserting a policy defense not contained in its reservation of rights letter where the delay was not unreasonable and the insured was not prejudiced