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To embed, copy and paste the code into your website or blog: The Texas Supreme Court recently increased policyholders’ influence over an insurer’s right to settle a third-party claim for less than policy limits. Insurers have long enjoyed a nearly absolute right to settle claims, even over policyholders’ objections; but In re Farmers Texas County mus. Ins Co., S.W.3d , 2021 WL 1583878 (Tex. Apr 23, 2021) changed this, giving policyholders the right to seek reimbursement from an insurer who settles for less than the policy limits, but forces contribution by the insured to obtain the release. Cassandra Longoria rear-ended a vehicle driven by Gary Gibson, who sued her for $1 million. Farmers undertook Longoria’s defense; but rejected Gibson’s offer at mediation to settle for $350,000, refusing to pay more than $250,000. Gibson withdrew the offer and increased his claim to $2 million. As trial approached, Longoria negotiated Gibson back to $350,000, but ....