A policyholder, claiming that its insurer is engaging in improper foot dragging while the policyholder faces huge liability exposure, enters into a settlement. It does so without the insurer's consent.
Tools for Challenging Settlements
A policyholder, claiming that its insurer is engaging in improper foot dragging while the policyholder faces huge liability exposure, enters into a settlement. It does so without the insurer's consent. Then the policyholder de-mands that the insurer fund the settlement. The insurer objects. In the litigation that is sure to follow, the insurer need not be on the defensive ' even if it breached its contractual obligations. Instead, several legal tools are available to an insurer to effectively challenge coverage for the settlement.
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