Research On The Liability Insurer's Settlement Obligations

Liability insurance underwrites the potential risks for the legal liability of the insured to a third person,in order to ensure financial stability and mood calm as nature of the insured.When the liability insurance accident happens,litigation,arbitration and reconciliation are all the dispute solutions,among which reconciliation requiring a negotiation and consultation between the parties as much as possible is the most cost saving method and should be given necessary importance.There is the obligation of liability insurer to fill the damage,and it is necessary to establish the liability insurer's settlement obligations based on the principle of good faith,thus realizing the system of liability insurance for the origins of the insured rights protection.With only two simple liability insurance clauses,our current "insurance law" is imperfect.Moreover the liability insurer's settlement obligations is not involved.And the relevant liability insurance contracts have nor the liability insurer's settlement obligations in the contract terms.In this paper,based on the relevant theory and referred to foreign operational experience,the legal attribute and the content of the liability insurer's settlement obligations,the legal consequences of violation of the aspects were discussed,and propose the corresponding reform and improvement of the proposal,wishing to conform to the contemporary function of liability insurance,to meet the requirements of the principle of good faith and the parties.Apart from introduction,this paper contains five chapters.The introduction part put forward that complying with the demand of contemporary social development,the liability insurance system should be perfected.And in order to successfully achieve its system function of protecting property safe and assuring of peace of mind,the liability insurer's settlement obligations should be established.For purposes of discussion,this paper is discussed in policy-holder and the insured under the same situation.The first chapter is a brief introduction of the liability insurance system which is the understanding basis of the liability insurer's settlement obligations.Then it mainly discusses the basic position of the liability insurer's settlement obligations.This paper advocates the liability insurer's settlement behavior regulation should be expressed by the model of "duty" legislation,and the dominant nature of the liability insurer's settlement behavior is compulsory,its rights attribute manifested through its obligations.The liability insurer's settlement obligation is a legal obligation,and is the main payment obligation as well as the obligation of filling the damages.The definition of the liability insurer's settlement obligations should make it clear that the liability insurer should perform his settlement obligation in accordance with the principle of good faith and come to a settlement with a third person within the liability limit for the insured's interests.The second chapter mainly discusses the performance of the liability insurer's settlement obligations.Its basis is civil agency theory,and its preconditions are that the insured has fulfilled the notification obligations when the liability accident happened and a third party claimed,and that disputes matters fall into liability insurance coverage.Its fulfill way has the liability insurer or the liability insured make a settlement offer,and the third person make a settlement offer two ways.And the latter way involves several aspects,the settlement offer reasonable or not,the principle of interest conflict resolution and reconciliation under three specific situations(mainly reflects different relations among the settlement offer amount,the amount of lawsuit and the liability limit)of acceptance or not,that have be carried on deep analysis,argues that "does not consider the limitation of liability" as the third person of the proposed settlement offer reasonable or not is the judgment standard;when the settlement amount is lower than the liability limit,the liability insurer has completely power to accept the settlement offer or not and the ultimate responsibility could be more than the liability limit;when the settlement amount is higher,the liability insured has the power and the insurer's ultimate responsibility is lower than the liability limit.In addition,this part also discusses the exceptions of the liability insurer's settlement obligations,the situations of the liability insured exercise reconciliation right by their own,the cost bearer of spending in the process of the settlement.The third chapter mainly discusses responsibility of the liability insurer when occurred nonperformance or incomplete performance.When nonperformance,the liability insurer shall bear the settlement,cost and their interest,"the right of failure"adverse consequences.When incomplete performance results harm to the liability insured namely extra responsibility to undertake,responsibility for breach of contract is a better cause of action so will be more conducive to the liability insured rights relief.The fourth chapter points out that on the issue of the liability insurer's settlement obligations,there is a lack of specified regulations in the insurance legislation in our country and short of promises in the insurance practice,thus putting forward the corresponding perfecting suggestions.The fifth chapter is conclusion,summing up the necessity and rationality of the liability insurer's settlement obligations,and pointing out that the research significance of this paper.