nonparticipation settlement clause
A nonparticipation settlement clause refers to a provision in professional liability policies that gives the insurer the right to settle claims against insureds—for any amount the insurer deems appropriate—without first consulting the insured.
Additional Information
Such provisions are unfavorable, and only a minority of insurers use this approach. In contrast, most professional liability insurers' forms reserve for the insured the right to approve settlement amounts to claimants.
