Section 6.41 Amount of Settlement With the Underlying Tortfeasor

• Library: Insurance Practice 2015

Because UIM policies have exhaustion clauses and consent clauses, the safest way to proceed with any settlement is to make sure that counsel has kept the UIM carrier informed and has its consent to any settlement. If counsel can obtain the written consent of the UIM motorist carrier, counsel does not need to worry about whether he or she has obtained the full policy limits of the underlying tortfeasor. Because there are exhaustion clauses and consent clauses in UIM policies, however, if counsel has not received the written consent of the UIM carrier to the settlement with the underlying tortfeasor, it is imperative that settlement with that tortfeasor include...