Insurance Settlement Dilemma: The Policyholder's Right to Settle When Insured and Insurer Disagree

This CLE course, featuring Peter Selvin, Partner and Chair of ECJ's Insurance Coverage and Recovery Department, will discuss what options exist when the insurer and policyholder disagree over how to resolve third-party liability, with an emphasis on the conditions under which a policyholder may settle the claim on its own, the risks of doing so, and its right to indemnity from the insurer.

Description

Policyholders and insurers often disagree about the financial, legal, emotional, and business costs involved in settling or litigating claims, litigation and settlement strategies, the value of the claim, and the amount and structure of any potential settlement.

Most of the time, disputes arise because the policyholder prefers to settle any underlying claims while the insurer prefers to contest liability, though sometimes the positions are reversed. Counsel needs to understand the full range of options available.

Our panel will discuss what options exist when the insurer and policyholder disagree over how to resolve third-party liability, with an emphasis on the conditions under which a policyholder may settle the claim on its own, the risks of doing so, and it's right to indemnity from the insurer.

The panel will address critical issues, including:

• Can the insured settle if the insurer is still defending?
• When does the insurer breach its contractual obligations so as to remove its right to rely on the voluntary settlement provision?
• What kind of notice must be given to the insurer before a settlement takes place?
• Must the insured give notice to the insurer if the insurer has denied a duty to indemnify?

Speakers

• Peter S. Selvin, Ervin Cohen & Jessup LLP
• Scott F. Bertschi, Clyde & Co US
• Charles P. Edwards, Barnes & Thornburg
• Diana S. Gliedman, Anderson Kill