Insured Rejects Settlement Offer Recommended by Insurance Company

Does an insurance policy’s Cooperation Clause require the insured to follow the insurance company’s recommendation regarding settlements? Petroleum Solutions, Incorporated (PSI) faced a suit from Bill Head Enterprises (Head) because a fuel tank systems constructed and installed by PSI on Head’s property leaked. PSI brought claims against Titeflex Corporation, the manufacturer of the flex connector responsible for the lead. Titeflex countersued. Find out what happened when PSI refused to accept the settlement offer its insurance carrier company negotiated with Titeflex.