diff --git a/tests/sdk_v1/agents_test.py b/tests/sdk_v1/agents_test.py
index 74830702..2eee1c12 100644
--- a/tests/sdk_v1/agents_test.py
+++ b/tests/sdk_v1/agents_test.py
@@ -1,11 +1,28 @@
 from conftest import create_test_module
 
 AGENTS_CREATE_PARAMS = [
-    ("caren_agent", {"name": "caren", "model": "openai/gpt-4o-mini", "embedding": "openai/text-embedding-3-small"}, {}, None),
+    (
+        "caren_agent",
+        {"name": "caren", "model": "openai/gpt-4o-mini", "embedding": "openai/text-embedding-3-small"},
+        {
+            # Verify model_settings is populated with config values
+            # Note: The 'model' field itself is separate from model_settings
+            "model_settings": {"max_output_tokens": 4096, "parallel_tool_calls": False}
+        },
+        None,
+    ),
 ]
 
 AGENTS_MODIFY_PARAMS = [
-    ("caren_agent", {"name": "caren_updated"}, {}, None),
+    (
+        "caren_agent",
+        {"name": "caren_updated"},
+        {
+            # After modifying just the name, model_settings should still be present
+            "model_settings": {"max_output_tokens": 4096, "parallel_tool_calls": False}
+        },
+        None,
+    ),
 ]
 
 AGENTS_LIST_PARAMS = [
diff --git a/tests/sdk_v1/conftest.py b/tests/sdk_v1/conftest.py
index 6b660ccf..d32c8e28 100644
--- a/tests/sdk_v1/conftest.py
+++ b/tests/sdk_v1/conftest.py
@@ -136,14 +136,7 @@ def create_test_module(
         expected_values = processed_params | processed_extra_expected
         for key, value in expected_values.items():
             if hasattr(item, key):
-                actual = getattr(item, key)
-                # Special handling for transformed fields (model, embedding)
-                if key in {"model", "embedding"}:
-                    assert verify_model_or_embedding_field(actual, value), (
-                        f"Field '{key}' mismatch: expected '{value}', got '{custom_model_dump(actual)}'"
-                    )
-                else:
-                    assert custom_model_dump(actual) == value
+                assert custom_model_dump(getattr(item, key)) == value
 
     @pytest.mark.order(1)
     def test_retrieve(handler):
@@ -178,14 +171,7 @@ def create_test_module(
         expected_values = params | extra_expected_values
         for key, value in expected_values.items():
             if hasattr(item, key):
-                actual = getattr(item, key)
-                # Special handling for transformed fields (model, embedding)
-                if key in {"model", "embedding"}:
-                    assert verify_model_or_embedding_field(actual, value), (
-                        f"Field '{key}' mismatch: expected '{value}', got '{custom_model_dump(actual)}'"
-                    )
-                else:
-                    assert custom_model_dump(actual) == value
+                assert custom_model_dump(getattr(item, key)) == value
 
     @pytest.mark.order(3)
     def test_modify(handler, caren_agent, name, params, extra_expected_values, expected_error):
@@ -212,14 +198,7 @@ def create_test_module(
         expected_values = processed_params | processed_extra_expected
         for key, value in expected_values.items():
             if hasattr(item, key):
-                actual = getattr(item, key)
-                # Special handling for transformed fields (model, embedding)
-                if key in {"model", "embedding"}:
-                    assert verify_model_or_embedding_field(actual, value), (
-                        f"Field '{key}' mismatch: expected '{value}', got '{custom_model_dump(actual)}'"
-                    )
-                else:
-                    assert custom_model_dump(actual) == value
+                assert custom_model_dump(getattr(item, key)) == value
 
         # Verify via retrieve as well
         retrieve_kwargs = {id_param_name: item.id}
@@ -228,14 +207,7 @@ def create_test_module(
         expected_values = processed_params | processed_extra_expected
         for key, value in expected_values.items():
             if hasattr(retrieved_item, key):
-                actual = getattr(retrieved_item, key)
-                # Special handling for transformed fields (model, embedding)
-                if key in {"model", "embedding"}:
-                    assert verify_model_or_embedding_field(actual, value), (
-                        f"Field '{key}' mismatch: expected '{value}', got '{custom_model_dump(actual)}'"
-                    )
-                else:
-                    assert custom_model_dump(actual) == value
+                assert custom_model_dump(getattr(retrieved_item, key)) == value
 
     @pytest.mark.order(4)
     def test_list(handler, query_params, count):
@@ -304,50 +276,6 @@ def custom_model_dump(model):
         return model.model_dump()
 
 
-def verify_model_or_embedding_field(actual_value, expected_value):
-    """
-    Verify that model or embedding fields match expected values.
-
-    These fields are transformed by the API:
-    - Input: "openai/gpt-4o-mini" (string)
-    - Output: {'model': 'gpt-4o-mini', 'max_output_tokens': 4096} (dict)
-
-    Note: Some fields like 'embedding' may return None in the new API response format,
-    which is acceptable and should not fail the test.
-
-    Args:
-        actual_value: The actual value from the API (dict, object, or None)
-        expected_value: The expected value from test params (string)
-
-    Returns:
-        True if values match or actual is None, False otherwise
-    """
-    # If actual value is None, accept it (new API format may use None for some fields)
-    if actual_value is None:
-        return True
-
-    if not isinstance(expected_value, str):
-        # If expected value is not a string, do direct comparison
-        return custom_model_dump(actual_value) == expected_value
-
-    # Convert actual value to dict if it's an object
-    if hasattr(actual_value, "model_dump"):
-        actual_dict = actual_value.model_dump()
-    elif isinstance(actual_value, dict):
-        actual_dict = actual_value
-    else:
-        return False
-
-    # Extract model name from expected string (format: "provider/model-name" or "model-name")
-    expected_model_name = expected_value.split("/")[-1] if "/" in expected_value else expected_value
-
-    # Check if the model name matches
-    if "model" in actual_dict:
-        return actual_dict["model"] == expected_model_name
-
-    return False
-
-
 def add_fixture_params(value, caren_agent):
     """
     Replaces string values containing '.id' with their mapped values.