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Davis v. State Farm Lloyds, Inc.

Court: Tx 5-Dallas  11/12/2019  Court of Appeals Agrees that Insured Breached Consent-to-Settle Clause in UIM Coverage but Insurer Failed to Show Actual Prejudice

The court applied the rule in Hernandez v. Gulf Group Lloyds that a UIM insured's breach of a consent-to-settle clause will defeat coverage only if the insurer shows it was actually prejudiced by loss of a valuable subrogation right, which the insurer did not establish.

automobile liability insurance policy, underinsured motorist, UM/UIM, settlement without consent, prejudice

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