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Loya Insurance Co. v. Avalos

Court: Tx Sup  05/01/2020  Supreme Court Recognizes Fraud Exception to the "Eight Corners" Rule

For the first time ever, the Supreme Court of Texas has specifically recognized an exception to the "eight corners" rule, holding that extrinsic evidence is admissible to determine the duty to defend when the insured and the third-party suing the insured collude to make false representations of fact in a suit for the purpose of creating coverage that would not otherwise exist.

automobile liability insurance, duty to defend, extrinsic evidence, eight corners rule, fraud, collusion

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