From the Attending Financial question bank
Contract Mastery · board-style
A dermatologist is named in a claim she believes is defensible. Her insurer proposes settling for $150,000. Her policy requires her written consent to settle but contains a hammer clause. She withholds consent, the case proceeds, and it later resolves for $400,000 plus $80,000 in additional defense costs incurred after the rejected offer. What is the most likely consequence under the policy?
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