What Rights Are Preserved by UIM Insurers with Consent-to-Settle Clauses?
Ex parte GEICO Indem. Co., et al.: When an UIM insurer allows the applicable statute of limitations to run as to any “new” claims that it may assert directly against a tortfeasor, the UIM insurer (1) maintains its rights to opt out of the litigation and decline to consent to the settlement between the claimant and tortfeasor, pursuant to its consent-to-settle clause in the policy, and (2) may still obtain reimbursement from the insured’s recovery against the tortfeasor. Consent-to-Settle Clauses and UIM Carrier Subrogation Rights The matters addressed in this decision arise from separate automobile accidents involving persons having underinsured...
