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- Title
UM -- COVERAGE -- "WRITTEN CONSENT" TO SETTLEMENT EXCLUSION.
- Abstract
This article focuses on a court decision related to the automobile industry. A provision of an automobile policy which excludes coverage under the uninsured motorist provision if the insured has, without the written consent of the insurer, made any settlement with any person who may be legally liable was held to be an unwarranted curtailment of the statutorily mandated uninsured motorist coverage. In this case, the plaintiff was involved with a collision with two cars, one insured, the other uninsured. The plaintiff settled his claim with the insured driver, without the written consent of his insurer. The court reasoned that the exclusionary clause in the policy attempts to give the insurance company complete control of the insured's right of action against all those involved in an accident, whether they are insured or uninsured. Such authority is not conferred by the statute. The court went on to say that insofar as the provision restricts the insured's right to compromise and settle his claim against an insured motorist who might be liable to him, it is contrary to the purpose of the statute.
- Subjects
LEGAL judgments; AUTOMOBILE industry; UNINSURED motorist insurance; INSURANCE companies; STATUTES; ACCIDENTS
- Publication
Arbitration Journal, 1976, Vol 31, Issue 2, p133
- ISSN
0003-7893
- Publication type
Article