The Policyholder should not forfeit coverage under the policy when the policyholder settles a claim without the insurance company’s authority, after the insurance company intentionally placed it interests adverse to those of the policyholder by issuing a reservation of rights and without any showing that the insurance company was prejudiced by the settlement.
Schwartz et al. vs. Liberty Mutual Insurance Company
Court U.S. Court of Appeals, 2nd Circuit
Case Number Docket No. 07-2794-cv (L), 07-2818-cv (CON)
- Insurer must show prejudice when insured settles without insurer's authority
- New York