Gary Netto v. Atlantic Specialty Insurance

LESLIE H. SOUTHWICK, Circuit Judge:

This case presents a question of first impression under Mississippi insurance law: may an insurer rely on a consent-to-settle exclusion in an insurance policy to deny coverage of a claim made by an unnamed additional insured under that policy? We conclude that absent evidence that the unnamed insured knew or should have known of the exclusion, the insurer may not enforce its contractual right to deny coverage because it had not consented to the settlement.

AFFIRMED.

FACTUAL AND PROCEDURAL BACKGROUND

Gary Netto was involved in an automobile accident while acting…