The Reasonableness of an Insurer's Decision to Withhold Cons

The Reasonableness of an Insurer's Decision to Withhold Consent to Settle is Assessed from the Insurer's Perspective, Not the Insured's | Jones, Skelton & Hochuli, P.L.C.


Apollo Education v. National Union Fire Ins. Co.
Arizona Supreme Court
February 17, 2021
Apollo operates several universities in various countries. National Union insured Apollo’s directors and officers under a directors and officers’ liability policy.  The policy included no duty to defend the insured if sued. Instead, Apollo would defend itself against any claims. Correspondingly, the policy contained no clause requiring the insured to cooperate with a defense provided by National Union.  The policy also required the insured to obtain the insurer’s consent before admitting liability, settling, stipulating to any judgment or incurring defense cost; and required that the insurer “shall not [ ] unreasonably withh[o]ld consent.”

Related Keywords

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