McKinney v. Morrow

CAMPBELL, Judge.

G.S. 20-279.21 (f) (3) provides that every motor vehicle liability insurance policy shall include the right of the insurance carrier to settle in good faith any claim covered by the policy. The insurance carrier has the right to settle claims even if that provision is not written into the policy.

By a compromise settlement between parties to an automobile collision each party effectively “buys his peace” respecting any liability created by the collision. The settlement constitutes an acknowledgment, as between the parties, of the liability of the payor and the nonliability, or…