Legal Question in Insurance Law in California

Re: Insurer authority to propound 998 without consent

The insurance company can settle unilaterally as long as the settlement is within the policy limits and the company pays the full amount, less any deductible. The insurer is not required to keep fighting a case it could resolve just because the insured doesn't want to settle.

If you want to keep fighting, the insurance company may let you do so if you waive its liability and pay both the legal bills for the remainder of the case and any judgment that is ultimately entered against you.

Section 998 offers do not necessarily involve entry of judgment, though most do.

Re: Insurer authority to propound 998 without consent

A CCP 998 offer to resolve a case usually does not involve a judgment. Instead, most offers typically include language that payment is contingent upon a dismissal being filed.

The insurance company in every personal lines policy has the right to settle a case without your consent. In certain commercial policies, the insured has the right to consent to the settlement.

In this case, the attorney should talk to you about it and explain the consequences to you. However, as long as the offer is within the policy limits, there is no requirement that the attorney get your okay.