Texas Supreme Court Opinion Has Companies Double Checking Contractual Insurance Obligations

Gray Reed
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On February 15, 2019, the Texas Supreme Court issued its opinion in Exxon Mobil Corporation v. The Insurance Company of the State of Pennsylvania (ICSOP) reversing the First Court of Appeals and finding that ICSOP had waived its right of subrogation against Exxon for worker’s compensation benefits paid to employees of Savage Refinery Services, an Exxon contractor and named insured under the worker’s compensation policy. The principal issue was whether the standard subrogation-waiver endorsement incorporates limitations from the underlying contract. The Court held that it does not.

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