Texas Justices Wary Of Exception To Insurance Defense Rule

Law360 (January 8, 2020, 6:12 PM EST) -- The Texas Supreme Court appeared hesitant Wednesday to recognize an exception to a long-standing insurance rule that would allow a State Farm unit to defeat its duty to defend policyholders facing litigation over a fatal ATV crash by relying on documents outside the policy and underlying suit. 

During a 40-minute hearing in Austin, counsel for State Farm Lloyds urged the Texas high court to acknowledge a limited exception to the Lone Star State’s “eight corners rule,” which generally establishes that, when deciding whether an insurer has a duty to defend its policyholder, a court may refer only to the relevant policy...

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