Texas Justices Mull Fraud Exception To Insurer Defense Rule

Law360 (February 26, 2020, 7:36 PM EST) -- Loya Insurance Co. urged the Texas Supreme Court on Wednesday to recognize an exception to the state's rule governing insurers' defense obligations to consider evidence that a policyholder committed fraud, thus freeing the insurer of any duty to defend her in litigation over a car crash.

Loya is seeking to reinstate a trial court's ruling that it had no duty to defend policyholder Karla Flores Guevara, whose husband was driving her car when it collided with another vehicle in 2014. According to court filings, evidence indicates that because Guevara's husband was not insured under her policy with Loya, she lied to...

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