Texas Justices Refuse To Weaken Insurance Defense Rule

By Michael Phillis (March 20, 2020, 6:44 PM EDT) -- The Texas Supreme Court on Friday affirmed a long-standing insurance industry rule and said State Farm's duty to defend its insured in a lawsuit over a fatal ATV crash hinged on the lawsuit itself and the policy documents.

The state's high court said unanimously that the "eight-corners rule," which constrains a decision over an insurer's duty to defend to the "four corners" of the policy and the lawsuit, still stands. The court rejected State Farm Lloyds' argument that for the rule to apply, the policy needs to include language requiring it to defend the policy holder "no matter if the allegations of...

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