The "Consent to Settle" clause in the Professional Liability policy requires what from the insurance company?

The "Consent to Settle" clause is a critical component of a Professional Liability policy. This clause requires that the insurance company must obtain approval from the insured before agreeing to settle a claim. This provision is significant because it gives the insured a say in how claims are managed, particularly in instances where settling might affect their professional reputation or lead to future liabilities.

By requiring the insurance company to seek the insured's consent, the clause ensures that the insured is involved in the decision-making process regarding settlements, allowing them to understand the implications and to weigh the potential outcomes of a settlement versus continuing to fight a claim. This empowers the insured to have a degree of control over their insurance coverage and claims process, making it a crucial aspect of their professional liability protection.

The other options do not accurately reflect the purpose of the "Consent to Settle" clause, as it does not mandate immediate settlements, does not imply that the insurer must keep the insured informed of every claim without their consent, nor does it allow the insurer to proceed with settlements without the input of the insured.