Insurance Settlement Dilemma: The Policyholder's Right to Settle When Insured and Insurer Disagree

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
- work Practice Area
Insurance
- event Date
Tuesday, May 10, 2022
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE course will discuss what options exist when the insurer and policyholder disagree over how to resolve third-party liability, with an emphasis on the conditions under which a policyholder may settle the claim on its own, the risks of doing so, and its right to indemnity from the insurer.
Faculty

Mr. Edwards is a seasoned trial lawyer and insurance claim advocate who is co-chair of the firm’s Insurance Recovery and Counseling practice. He has helped a wide range of businesses and individuals obtain hundreds of millions of dollars of insurance proceeds in his career. Mr. Edwards has secured insurance coverage for lawsuits, construction defects, natural disasters, thefts and other types of losses.

Mr. Bertschi focuses his practice on insurance coverage, professional liability defense and data breach response. He represents insurance companies in litigating coverage disputes, including the institution of declaratory judgment actions and actions to rescind insurance policies, the defense of breach of contract actions and actions in which the insured alleges bad faith or extra-contractual damages, and actions between insurance companies to resolve allocation and relative priority issues. He also advises insurance companies on all aspects of the claims-resolution process, including the provision of coverage opinions, advice on the allocation of indemnity payments, strategies to minimize the risk of bad faith suits and suits to collect consent judgments, and advice as monitoring counsel.

Mr. Selvin, Chair of ECJ's Insurance Coverage and Recovery Department, is a business trial lawyer with over 30 years of experience. While he specializes in insurance coverage and international litigation, his experience has touched many different areas of law, including real estate, intellectual property, and professional liability disputes. Within those areas, Peter’s practice includes both trying cases and counseling clients to avoid litigation. Chief among his strengths is his ability to counsel clients and help achieve strategic business solutions.

Ms. Gliedman, a shareholder with Anderson Kill's insurance recovery group, represents policyholders in multi-party, multi-issue insurance coverage litigations, with an emphasis on Comprehensive General Liability Insurance, Directors & Officers Liability Insurance, Employment Practices Liability Insurance and Errors & Omissions/Professional Liability Insurance.
Description
Policyholders and insurers often disagree about the financial, legal, emotional, and business costs involved in settling or litigating claims, litigation and settlement strategies, the value of the claim, and the amount and structure of any potential settlement.
Who has control over settlement decisions and the rights and duties of the insured and insurer depend on numerous factors. Differing state laws, reservations of rights, policy terms, and the facts and allegations at issue in the litigation, among other things, all may have an impact on the parties’ rights and obligations regarding settlement.
Settlement disputes arise in differing contexts. In some cases, the policyholder prefers to settle any underlying claims while the insurer prefers to contest liability. In other cases, the positions are reversed. In both instances, disputes may exist about the particulars of the settlement. Counsel need to understand the full range of options available.
Listen as this experienced panel discusses what options are available when the insurer and policyholder reach an impasse and the risks to both parties.
Outline
- How the issue arises
- Policyholder options and risks
- Insurer options and risks
Benefits
The panel will review these and other key issues:
- Can the insured settle if the insurer is still defending?
- When does the insurer breach its contractual obligations so as to remove its right to rely on the voluntary settlement provision?
- What kind of notice must be given to the insurer before a settlement takes place?
- Must the insured give notice to the insurer if the insurer has denied a duty to indemnify?
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