An appeals court in Houston has reversed a $3.1 million jury verdict against Austin, Texas-based Texas Mutual Insurance Company in a dispute over cancellation of a firm's workers' compensation policy.
The plaintiff in the case, Texas Mutual's former policyholder Sembera Security Systems Inc. of Cypress, Texas, first sued its insurance agent in Harris County District Court for allowing coverage with Texas Mutual to lapse for nonpayment of a premium.
The agent then added Texas Mutual to the case, alleging that the insurer cancelled the policy in error.
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