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9.—(1) Where a conflict of interests arises or there is disagreement over the settlement of a dispute between the insurer and insured under a legal expenses insurance contract, the insurer shall give written notice to the insured informing him of—
(a)the right referred to in regulation 6(2), and
(b)the possibility of having recourse to arbitration in accordance with regulation 8.
(2) Where the management of claims is entrusted to a separate undertaking as mentioned in regulation 5(3), the dutyof the insurer is to make arrangements to secure that such notice is given by that undertaking.
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