Texas Insurance Law Newsbrief - April 18, 2023
SUPREME COURT OF TEXAS NARROWLY INTERPRETS UMBRELLA POLICY “NOT FOR BROADER COVERAGE” CLAUSE
The Supreme Court of Texas closed out the work week of April 14, 2023, by siding with Exxon to require an umbrella insurance provider to reimburse Exxon for payments made to a burn victim. Read more...
FEDERAL COURT DISMISSES HAIL CLAIMS AS TIME-BARRED
The United States District Court for the Western District dismissed an insured’s claims for property damage as time-barred. Read more...
NO BUSINESS INTERRUPTION PROCEEDS FOR THIS BANKRUPTCY
In In re: New York Inn Inc. v. Associated Industries Insurance, 2023 WL 2938371, the United States Bankruptcy Court for the Northern District of Texas evaluated whether an additional insured to a general liability policy had standing to file a lawsuit for a denial of a business interruption claim. Read more...
CORPUS CHRISTI COURT REVERSES SUMMARY JUDGMENT FOR INSURER - DELIVERY OF ENDORSEMENT TO RETAIL AGENT MAY NOT BE EFFECTIVE
The Corpus Christi appellate court recently examined the effect of a policy endorsement that was not delivered to the insured before the loss and addressed the question of which party an insurance intermediary actually represents. Read more...
PAYMENT OF APPRAISAL AWARD AND INTEREST RESULTS IN SUMMARY JUDGMENT
In the latest salvo in the Texas appraisal wars, a federal judge in Sherman held that an insurer who pays an appraisal award of a weather claim and all interest which may be due under Texas Insurance Code Chapter 542A (a/k/a the Texas Prompt Payment of Claims Act) defeats any remaining claim for 542A interest and attorney fees as a matter of law. Read more...
FEDERAL COURT UPHOLDS JUDGMENT AGAINST INSURER AFTER ISSUING DEATH PENALTY SANCTIONS AGAINST INSURER’S ATTORNEY
A federal court in McAllen denied an insurer’s motion to vacate the court’s prior issuance of death penalty sanctions for conduct by the insurer’s attorney during litigation. Read more...
U.S. DISTRICT COURT GRANTS SUMMARY JUDGMENT BASED ON POLICY’S COSMETIC-DAMAGE EXCLUSION
On March 13, 2023, the United States District Court for the Northern District of Texas granted summary judgment in favor of Allstate based on the policy’s cosmetic-damage exclusion. Read more...
U.S. DISTRICT COURT GRANTS MOTION TO COMPEL APPRAISAL DESPITE INSURER’S POSITION THAT THE DAMAGE WAS NOT A COVERED LOSS
On March 16, 2023, the United States District Court for the Southern District of Texas granted the insured’s motion to compel appraisal notwithstanding the insurer’s position that the damage was not a covered loss. Read more...