A liability insurer has issued a policy, reserving the sole right to effect a settlement, and refuses to settle, within the limits of the policy, a claim against the insured. A judgment in excess of the policy limit is then recovered against the insured. These circumstances present the question whether the insurer may be liable to the insured for the amount of the judgment in excess of the policy limit.
This comment will be limited to consideration of cases involving only the above facts, and no attempt will be made to consider the liability of the insurer for failing to undertake defense of the claim, to continue in defense of it or to prosecute an appeal. Nor will regard be given to the effect of cooperation clauses, settlement by the insured or improper conduct of the defense by the insurer.
Clinton R. Ashford S.Ed.,
INSURANCE-LIABILITY OF INSURER FOR JUDGMENT IN EXCESS OF POLICY LIMITS,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol48/iss1/7