Consent to settle is a provision in liability policies that states the insurance company will not settle any claim without your prior consent. Most policies have a hammer clause which comes into play if the final settlement to the other party is higher than the insurance company’s original settlement offer. The hammer clause is usually a split percentage such as 80/20 and represents a sharing of the amount paid to the other party that exceeds the original offer.
Watch this video “What does consent to settle mean and what is a hammer clause?” for more details:
This is Question #24 of a 100 insurance video series that Ross & Yerger is producing to provide insurance consumers with quick, valuable answers to their everyday insurance questions.
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