• Pennsylvania Permits Insureds Being Defended under a Reservation of Rights to Settle Without Their Insurer's Consent
  • August 10, 2015 | Author: Jonathan M. Stern
  • Law Firm: Schnader Harrison Segal & Lewis LLP - Washington Office
  • A standard provision in the commercial general liability policy and many other liability policies precludes voluntary payments-settlements-by the insured without the insurer’s consent. The Supreme Court of Pennsylvania’s decision in The Babcock & Wilcox Company v. American Nuclear Insurers, No. 2 WAP 2014 (Pa. July 21, 2015), potentially vitiates that provision when the insurer has reserved its right to deny coverage and will not consent to a settlement.