Standard liability insurance policies typically contain a clause vesting in the insurer the right to "make such investigation, negotiation and settlement of any claim or suit as it deems expedient."
Orlovsky, Donald A.
"The Insurer's Liability for Judgements in Excess of Policy Limits and the Movement toward Strict Liability: An Assessment,"
Nova Law Review: Vol. 1
, Article 5.
Available at: http://nsuworks.nova.edu/nlr/vol1/iss1/5