A “consent to settle” clause is a common feature of liability insurance policies. The clause provides that an insurer is not responsible to pay a claim that the insured settles without the insurer’s consent.

This prohibition seems straightforward. However, given the sometimes conflicting interests of the insured and insurer where the insurer is defending under a reservation of rights or where the value of the claim exceeds the policy limits, application of this seemingly straightforward term can prove difficult.

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