More Courts Discouraging Policyholder Settlements in Excess Claims Cases

As many policyholders have found, the insurance industry’s promise of “seamless coverage” can be anything but. Policyholders often have to pursue insurance coverage for a single claim on an ad hoc basis against multiple insurance companies based upon a myriad of inconsistent denials. This is particularly troubling when a lower-level insurance company is willing to reach a reasonable settlement but the insurance company sitting above it digs in for slash and burn litigation.