A provision (also known as the "hammer clause" and "blackmail settlement
clause") found in professional liability insurance policies that requires an
insurer to seek an insured's approval prior to settling a claim for a specific
amount. However, if the insured does not approve the recommended figure, the
consent to settlement clause states that the insurer will not be liable for
any additional monies required to settle the claim or for the defense costs
that accrue from the point after the insurer makes the settlement recommendation. See also Coinsurance hammer clause.
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