What does Nonparticipation Settlement Clause mean? Read on to discover the definition & meaning of the term Nonparticipation Settlement Clause - to help you better understand the language used in insurance policies.
Nonparticipation Settlement Clause
Provisions in professional liability policies that give the insurer the right to settle claims against insureds for any amount the insurer deems appropriate without first consulting the insured. Such provisions are unfavorable, and only a minority of insurers use this approach. In contrast, most professional liability insurers' forms reserve for the insured the right to approve settlement amounts to claimants.
We hope the you have a better understanding of the meaning of Nonparticipation Settlement Clause.