Question

The "Consent to Settle" clause in the Professional Liability policy is best described as:

A) A provision allowing the insurer to settle a claim without the insured's consent
B) A requirement for the insured's permission before settling a claim
C) A clause stating that settlements are mandatory in all cases
D) A provision excluding any settlement options

Answer 1

The "Consent to Settle" clause in the Professional Liability policy is a requirement for the insured's permission before settling a claim.

Step-by-step explanation:

The "Consent to Settle" clause in the Professional Liability policy is best described as:

B) A requirement for the insured's permission before settling a claim

This clause in the policy ensures that the insurer cannot settle a claim without the consent of the insured. It provides the insured with the authority to make decisions regarding settlement negotiations and prevents the insurer from settling a claim against the insured without their permission.