NU Online News Service, Oct. 7, 4:00 p.m. EDT

Lloyd's Underwriters do not have to pay Safeco Insurance Company more than $1 million in defense costs in connection with a professional liability policy, because plaintiff Safeco did not have the defendant Lloyd's Underwriters' permission to settle the underlying claim.

In the case, Judge Charles F. Palmer of the Superior Court of California, County of Los Angeles, granted summary judgment to the Lloyd's Underwriters on Sept. 30 because a no-voluntary-payment clause, contained in the directors and officers policy in question, required Safeco to obtain written consent from Lloyd's Underwriters before entering into a settlement in an underlying case.

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