Glossary
Consent to settle
A policy provision requiring the carrier to get your agreement before settling a claim. Some forms include a “hammer clause” capping the…
What is consent to settle?
A policy provision requiring the carrier to get your agreement before settling a claim. Some forms include a “hammer clause” capping the carrier’s exposure if you refuse a settlement it recommends.
Why it matters
This clause decides who controls settlement of a claim against you. Policies with full consent let you refuse a settlement; policies with a hammer clause penalize refusing. Professionals who care about reputation should read this clause before price-shopping, because the cheapest quote often has the weakest version.