Insurance lawyers often will hear a story that goes like this. – I was involved in an accident last year. The other guy was at fault. I let my insurance company know about the wreck and then I found out that my insurance company paid the other guy. Can I sue them for doing that?
This issue is addressed in a 2000, Dallas Court of Appeals opinion styled, Stevens Transport, Inc. v. National Continental Insurance Company, et al.
Here are the facts of the case: National Continental Insurance Company, Progressive County Mutual Insurance Company, and Progressive Casualty Insurance Company provided a truckers insurance policy to Stevens Transport, Inc. The policy included a right to defend and settle any suit involving damages resulting from an accident caused by the use of a covered automobile. The policy had a $250,000 deductible.