Unnamed Insured's Ignorance About Right-to-Settle Exclusion Prevents Denial of Claim

Gary Netto, an employee of Pearl River County, Mississippi, sustained injuries in a car accident when an alleged uninsured motorist hit the county-owned vehicle in which he was a passenger. As a matter of policy, Pearl River County does not release copies of county insurance policies to employees. As an “unnamed additional insured” on Pearl River County’s policy with Atlantic Specialty Insurance, Netto did not know the policy included a “consent to settle” exclusion. Atlantic denied Netto’s claims because he settled with the driver and the Mississippi Worker’s Compensation Commission without Atlantic’s permission. Both the district court and the Fifth Circuit Court of Appeals denied Atlantic’s motion for summary judgment. Read the discussion on the case here.