By Laura Foggan (May 17, 2018, 3:03 PM EDT) -- The American Law Institute's Restatement of the Law on Liability Insurance has been criticized for overreaching by proposing innovations in the law that should reside with legislators, not a private organization publishing restatements of the law. It contains many provisions that conflict with the common law or statutory law, or that establish new rules where no law exists. One of the most dramatic changes proposed for insurance law is Section 12(1), which sets out a new rule imposing liability on an insurer for defense counsel's "negligent act or omission" where the insurer "fails to take reasonable care" in selecting defense counsel and defense counsel's negligence "is within the scope of the risk that made the selection of counsel unreasonable."...