Exxon Mobil Corporation v. the Insurance Company of the State of Pennsylvania

For public policy reasons, Texas's no-fault workers' compensation system permits the insurance carrier to recoup all benefits paid to an injured worker out of the "first money" the worker recovers from a liable third party. Carriers may, however, choose to waive this right in exchange for an enhanced premium. Under a standard Texas Department of Insurance endorsement commonly called a "subrogation waiver," an insurance carrier agreeing to a "blanket" waiver of the recoupment right cannot, directly or indirectly, recover benefit payments from "[a]ny person or organization for whom the Named…