A Texas appellate court recognized that an insurance carrier is entitled to recover all benefits paid to an injured worker out of the "first money" recovered from a liable third party.
Insurers that suffer a cyberattack could encounter financial losses, business disruptions and reputational damage, the same losses their policyholders would experience.
The state's legislative response presents an interesting case study on government efforts to curb the impact of bad faith laws as a result of lessons learned from this tragedy.