Consent to Settle Provision

One of the many benefits of The Program is its Consent to Settle provision, offered in most states.* Other insurance carriers may attempt to dispose of meritless claims, simply paying a claimant to go away. But with our coverage provided, that is not the case. We consider your input to be a vital part of the decision of how to proceed with a claim, whether it be an attempt to negotiate a settlement or to prepare for defending the case at trial.

Compare Us to the Competition. An important aspect of the Consent to Settle provision is that The Program's provision contains no penalties against you for your refusal to consent to a settlement. Still in effect in some policies issued by other carriers is a so-called hammer clause. In many cases, it requires the insured to pay out of their own pocket the difference between a judgment awarded by a jury and the amount for which the insurer unsuccessfully attempted to settle the claim. That is, if an insured refused to consent to a settlement and then a jury found the physician guilty of negligence, that insurer can refuse to pay the amount of the award which was over and above the settlement figure discussed. That practice is hardly in the best interest of conscientious physicians concerned with defending their reputation and practice, and that is why there is no hammer clause in The Program's policy.
 

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