Settlement of Action Brought by Third Party Against Person Insured Under Commercial Liability Insurance Policy; Notice to Insured Required.

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Sec. 2204.

Prior to a trial, an insurer shall not settle an action brought by a third party against a person insured under a commercial liability insurance policy issued by the insurer, unless the insurer gives the insured notice of the settlement at least 10 days prior to the settlement. As used in this section, "commercial liability insurance" means insurance which provides indemnification for commercial, industrial, professional, or business liabilities.

History: Add. 1986, Act 173, Imd. Eff. July 7, 1986
Popular Name: Act 218


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