In a malpractice lawsuit settlement, which statement about the insurer's rights is TRUE?

In a malpractice lawsuit settlement, an insurer has the right to settle the claim in a manner that it finds advantageous to its interests. This principle is grounded in the contractual relationship between the insurer and the insured, where the insurer generally has the authority to manage and settle claims within the policy limits.

This authority allows the insurer to evaluate the circumstances of the claim, consider potential liabilities, and negotiate settlements that best protect its financial interests and those of the insured. The insurer's decision-making regarding claim settlements is often driven by factors such as the strength of the case, potential litigation costs, and overall risk exposure.

While insurers operate within legal and ethical standards, they are not required to obtain the explicit consent of the insured before settling unless specified in the policy. This autonomy in settling claims helps the insurer efficiently manage resources and mitigate unnecessary costs, reflecting the business principles of insurance management.