Case Details

Year Initiated/Committed

1989

Year Resolved

1992

Settlement Amount

$6.7 million and $2.6 million atty's fee

Court

53rd Judicial District, Travis County, Texas

Docket Number

439089

Lead State

TX

Participating States

TX

Defendant(s)

Travelers, St. Paul Insurance Co., Insurance Services Office, Inc., Aetna, Hartford, INA, USF&G, Firemen’s Fund, Liberty Mutual, Merrett Underwriting, and Robin AG Jackson

Case Description

Texas sued to enjoin the Defendant insurance companies, ISO, and certain reinsurers from limiting coverage by the elimination of long tail coverage policy forms and replacing them with “claims made” policy forms. Texas’ petition alleged that Defendants sought to accomplish this change in policy forms through boycott of certain general liability lines of insurance. Matter settled & Defendants, collectively, agreed to pay $6,600,000 for the establishment of a 501 (c)(3) for purpose of facilitating effective oversight of insurance. Defendants agreed to certain behavioral restrictions. Defendants, collectively, paid $2.6M in attorney fees & investigative costs.