“Freedom To Contract” Gives Rise To Big Recovery Opportunities From Policyholders For Self-Insured Retentions, Deductible Reimbursements, Retrospective Premiums And Loss Adjustment Expenses

February 14, 2012

Insurance policies often include language that allows insurers to recover amounts they have advanced for the insured’s benefit. For instance, if the insured’s policy has a SIR, the policy may contain a provision similar to the following:

We shall have the right but no obligation, in all cases,  to assume charge of the defense and/or settlement of any claim, and, upon our written request, you shall tender such portion of the SIR as we may deem necessary to complete the settlement of such claim.

Freedom to Contract