Nonparticipation settlement clause

Term · Insurance and risk management · MLC-T-INS-002348

A provision in a liability insurance policy that grants the insurer the right to settle a claim without the consent of the insured. This clause allows the insurer to manage litigation costs and settle within policy limits, even if the insured disagrees with the settlement terms or amount. Such clauses are common in professional liability and errors and omissions policies where reputational concerns are present.

Table 1. Record
Identifier	MLC-T-INS-002348
Field	Insurance and risk management

Record as JSON

{
  "id": "MLC-T-INS-002348",
  "term": "Nonparticipation settlement clause",
  "field": "Insurance and risk management",
  "definition": "A provision in a liability insurance policy that grants the insurer the right to settle a claim without the consent of the insured. This clause allows the insurer to manage litigation costs and settle within policy limits, even if the insured disagrees with the settlement terms or amount. Such clauses are common in professional liability and errors and omissions policies where reputational concerns are present.",
  "url": "https://mlchart.com/terminology/insurance/nonparticipation-settlement-clause/"
}

Record 2,346 of 3,748 in Insurance and risk management terminology (MLC-0106). Request the full dataset.