In a case of first impression, the state Superior Court has ruled that when an insurer agrees to defend an insured subject to a reservation of rights, the insured may either accept the insurer's defense and remain bound by a consent-to-settlement clause while allowing the insurer to control the litigation, or furnish its own defense and retain control of the litigation, the costs of which may or may not be covered by the insurer depending on whether those costs are deemed fair, reasonable and non-collusive.
Insurers May Be Off Hook for $80 Mil. Settlement
The Legal Intelligencer
July 12, 2013