State Farm Lloyds Insurance Co. v. Maldonado

In this case, we consider two issues: whether an insurance company breached its Stowers 1 duty to the insured, and whether the insured’s failure to comply with the terms of an insurance policy precludes any recovery on the policy by the insured’s judgment creditor. The court of appeals held that the insurance company negligently failed to settle within policy limits, and that the judgment creditor could recover on the policy. We disagree.

I

Adelfa Maldonado worked for Curtis Robert, Sr., as a bookkeeper for nearly twenty years. In 1990, Maldonado resigned her position with Robert and went to…