Southern Guaranty Insurance v. Dowse

SEARS, Presiding Justice.

Certiorari was granted to consider whether the Court of Appeals erred in holding that an insurer that refused to defend or indemnify its insured was estopped from subsequently arguing that a settlement agreement entered into by the insured and a third party relieved the insurer from its obligations under the policy. Having reviewed the record, we agree with the Court of Appeals’ ruling, but emphasize that the insurer is not estopped from arguing that the claims brought against its insured are not covered under the policy’s terms. Therefore, while we affirm the ruling…