Argonaut Insurance Co. v. Baker

in which Chief Justice PHILLIPS, Justice HECHT, Justice ENOCH, Justice OWEN, Justice BAKER, and Justice JEFFERSON join.

In 1989, the Texas Legislature required every workers’ compensation carrier to offer optional deductible plans to allow policyholders to “self-insure” for the deductible amount. Tex. Ins.Code art. 5.55C(a). Under such a policy, the carrier must make all payments for benefits to an injured employee, including those payable from the deductible amount. Id. art. 5.55C(d), (e). When a third-party tortfea-sor causes the employee’s injuries, the carrier is subrogated to the injured…