Texas Supreme Court Gives Policyholders a Greater Voice When Settling Covered Claims
By EsqSocial Corporation 07/05/21
The Texas Supreme Court recently increased policyholders’ influence over an insurer’s right to settle a third-party claim for less than policy limits. Insurers have long enjoyed a nearly absolute right to settle claims, even over policyholders’ objections; but In re Farmers Texas County mus. Ins Co.,___ S.W.3d ___, 2021 WL 1583878 (Tex. Apr 23, 2021) changed this, giving policyholders the right to seek reimbursement from an insurer who settles for less than the policy limits, but forces...
By: Payne & Fears