Consenting To Settle Covered, Noncovered Claims?

Law360, New York (August 21, 2009, 12:43 PM EDT) -- Liability insurers frequently encounter the situation where their insured is sued in a lawsuit involving covered and noncovered claims, the insured negotiates a settlement of all claims and then the insured asks the insurer to consent to the settlement and also to indemnify for the settlement.

In this article, we briefly address some relevant principles of New York insurance law concerning whether or not to consent to a settlement as reasonable, implications resulting from such consent and allocating the settlement between covered and noncovered claims....
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