Travelers Prop. Cas. Co. v. Stresscon Co

Summary

The court held that an insured's voluntary settlement and payment of a third-party claim without the insurer's consent barred indemnification under an unambiguous no-voluntary-payments clause. The court declined to extend the notice-prejudice rule to that clause because it defines the scope of coverage rather than merely imposing a procedural notice obligation. The court reversed and remanded for the jury verdict to be vacated and a directed verdict entered for the insurer.