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FAQ: Can my insurer settle a case against me?

June 26, 2006 by Jonathan Stein

Yes. Your insurance policy lets them settle. There are two ways this can happen.

First, they can settle a claim or a lawsuit if they can reach an agreement with the other party.

Second, they can settle your case via a CCP 998 offer. This is a special section of the Code of Civil Procedure which tries to encourage case settlement.

A CCP 998 offer to resolve a case usually does not involve a judgment. Instead, most offers typically include language that payment is contingent upon a dismissal being filed.

The insurance company in every personal lines policy has the right to settle a case without your consent. In certain commercial policies, the insured has the right to consent to the settlement.

In most cases, the attorney should talk to you about it and explain the consequences to you. However, as long as the offer is within the policy limits, there is no requirement that the attorney get your permission.

Categories: Claims, Insurance and Claims FAQ, Law, Personal Injury

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