Apollo Education v. National Union Fire Insurance

Summary

The court held that, under a directors-and-officers policy without a duty to defend, the reasonableness of an insurer’s refusal to consent to a settlement is assessed from the insurer’s perspective, not the insured’s. The insurer must independently investigate, value, and fairly consider the claim, but need not approve a settlement merely because the insured considers it reasonable. The court answered the certified question without deciding whether the insurer actually breached the policy.