ERM Considerations:
- The GA Supreme Court ruled that XL was not obligated to contribute to a settlement that they did not consent to
- This is out of line with most similar cases because the burden is on the insurer to show it was prejudiced by the lack of consent
- This case will have a big impact on GA suits where consent is an issue but should not be a big deal outside of Ty Cobb’s home state
An insurer is not liable for a bad faith claim in a case where, contrary to policy language, an insured settled without the insurer’s consent, says the Georgia Supreme Court, in a case involving an XL Reinsurance America Inc. unit.
