Question

All of the following statements are TRUE regarding the "consent to settle" provision of Professional Liability policies, EXCEPT:

a. This provision requires the insurer to have the insured's approval on the amount that is settled on the claimant
b. The Insurance Commissioner/Director/Superintendent of a given state would refer to an insurance company formed under the laws
c.It is essential that operations at some businesses be continued regardless of circumstances.

Answer 1

The "consent to settle" provision of Professional Liability policies requires the insurer to have the insured's approval on the settlement amount, but is not true for all statements.

Step-by-step explanation:

The "consent to settle" provision of Professional Liability policies requires the insurer to have the insured's approval on the amount that is settled on the claimant, which makes option a. true. Option b. is not relevant to the provision. Option c. is also true as it is essential for operations at some businesses to be continued regardless of circumstances.

Therefore, the statement "All of the following statements are TRUE regarding the 'consent to settle' provision of Professional Liability policies" is incorrect.