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.
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PLI VII.B