Under what condition is uninsured motorist coverage excluded for claims settled without insurer consent in a personal auto policy?

Uninsured motorist coverage is designed to protect insured individuals when they are involved in accidents with drivers who do not have insurance. One critical aspect of this type of coverage is that the insured must obtain the insurer's consent before settling any claims related to an accident covered under this policy. If a settlement occurs without such consent, the insurer's rights, particularly regarding subrogation, could be compromised.

Subrogation allows an insurer to pursue recovery from the at-fault party after indemnifying the insured for their losses. If a settlement is reached without the insurer's consent and this action prejudices the insurer's ability to recover those costs (for example, if the settlement amount exceeds what the insurer could have pursued or if the liability of the uninsured motorist is unclear), the insurer can deny coverage. This is because the insurer is no longer able to assert their rights effectively.

The other options do not accurately capture the specific condition under which uninsured motorist coverage is excluded due to settlement actions devoid of insurer consent. For instance, the status of the claimant as a named insured is not central to whether the insurer's subrogation rights are affected. Similarly, the claim settlement exceeding policy limits or the accident occurring outside of the insured's state does not directly relate