(1) When a claim is made against a person, the person's insurer may:
(a)
conduct and control negotiations in respect of the claim, and
(b) conduct, or
take over the conduct of, any legal proceedings in respect of the claim and
may conduct those proceedings in the name and on behalf of the person, and
(c) at any stage of those negotiations or proceedings, compromise or settle
the claim, and
(d) exercise any function conferred by this Part on the person
in respect of the claim.
(2) The person against whom the claim is made shall
sign all such warrants, authorities and other documents as may be necessary to
give effect to this section.
(3) If the person fails to do so or is absent or
cannot be found, the insurer may sign the warrants, authorities or other
documents on behalf of the person.
(4) Nothing said or done by an insurer
under this section in connection with the settlement of a claim or the conduct
of proceedings in respect of a claim shall be regarded as an admission of
liability in respect of or in any way prejudice any other claim, action or
proceeding arising out of the same occurrence.
