What does the Consent to Settle Provision require?

The Consent to Settle Provision requires that the insured must agree to any claim settlement. This provision is significant because it gives the insured control over the settlement process and the amount for which a claim can be settled. In situations where this provision is included in a policy, the insurer cannot unilaterally decide to accept a settlement offer without the insured's consent.

This fosters a collaborative approach between the insurer and the insured since the insured may have specific interests, concerns, or potential repercussions regarding the settlement that the insurer may not fully understand or consider. It helps protect the insured's rights and ensures that decisions made during the claims process align with the insured's best interests.

Understanding this provision is crucial for policyholders, as it determines their involvement in the claims settlement process and underscores the importance of communication and agreement between the insured and the insurer during that phase.