What does the 'Consent to Settle' provision require?

The 'Consent to Settle' provision requires that the insurer obtain consent from the Named Insured before settling a claim. This provision is crucial because it empowers the Named Insured, giving them a say in decisions that might affect their financial or reputational standing. If the insurer does not seek this consent, the Named Insured may find themselves bound by a settlement they did not approve, which could result in inadequate coverage of their legal rights and interests. This ensures that the interests of the policyholder are protected, allowing them to influence the resolution of claims.

While the other options present different aspects of claim settlements, they do not accurately capture the essence of the 'Consent to Settle' provision. The obligation for settlement costs, the insurer's ability to act independently, and the influence of state law are all important but do not pertain directly to the requirement of obtaining consent from the Named Insured, which is the primary focus of this provision.