What must Dr. Adams' insurer do before settling her malpractice lawsuit?

Insurers have specific obligations when it comes to settling claims, particularly in the context of malpractice lawsuits. Before settling a lawsuit, an insurer must seek the consent of the insured, in this case, Dr. Adams. This is crucial because a settlement can have significant implications for the professional's future, reputation, and finances. The insured has the right to be involved in the decision-making process, ensuring that they are comfortable with how their case is being resolved.

In many cases, particularly those involving malpractice, the insured party may wish to reject a settlement in order to maintain their professional standing or to preserve the right to defend themselves against future claims. Therefore, requiring the insurer to seek the insured's consent helps protect the interests of the insured while fostering an open line of communication between the insurer and the insured.

This requirement ensures that policyholders have agency in the settlement process, particularly given that the outcomes can have long-lasting effects on their careers and personal lives. The obligation to obtain consent aligns with principles of fairness and accountability in the insurance process.