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Cancel My Reservation! Pennsylvania Sows Confusion Over Consent-to-Settle Clauses

2015-09-28 23:12:12| Industrial Machines - Topix.net

This summer, the Supreme Court of Pennsylvania addressed an important question that has divided other courts: if an insurer defends a claim subject to a reservation of rights, may the insured settle the claim without the insurer's consent? Earlier cases considered whether or not the insurer's reservation of rights has the effect of "narrow[ing]" the policyholder's contractual duty to cooperate in its own defense. E.g. , United Services Auto Assoc.

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