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Texas Justices Say Workers' Comp Deals Must Follow Formula

Law360, Dallas (June 24, 2016, 8:04 PM EDT) -- The Texas Supreme Court on Friday dismantled a workers’ compensation settlement American Home Assurance Co. had reached, saying the insurer’s agreement to pay an injured worker supplemental income benefits didn’t comply with strict statutory formulas.

In an 8-1 ruling, the court held a trial court and lower appellate court had both wrongly approved of a “noncompliant” insurance settlement for worker Bonnie Jones that paid her a partial award of supplemental income benefits in spite of a finding by the Texas Department of Insurance’s Division of Workers Compensation that Jones hadn’t fulfilled mandatory work search requirements for the entire pay period at...

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