Insurer Still Has A Duty To Defend, Despite Collusion and Fraud

September 17, 2018

The Court of Appeals of Texas, Fourth District has turned down the decision of the lower court and issued a decision that seems to imply that an insured can collude with others for the purpose of requiring the insured's insurance carrier to provide a defense to a lawsuit against the insured. This decision came based upon an argument that the eight-corners rule governs in situations where the complaint does not match facts that later arise. The case is Avalos v. Loya Ins. Co., No. 04-17-00070-CV, 2018 Tex. App. LEXIS 5629 (App. July 25, 2018).