Highway Ins. Underwriters v. Lufkin-Beaumont Motor Coaches, Inc.

On Rehearing.

We have the following comments to make regarding Insurer’s motion for rehearing:(1) The Commission’s description (in Stowers Furn. Co. v. American Indemnity Co., 15 S.W.2d 544, 547) of Insurer’s relation to Insured shows that the Commission rejected good faith as the test of Insurer’s liability in such a case as this. For the Commission said that the Insurer before them “by the very terms of the contract, assumed the responsibility to act as the exclusive and absolute agent of the assured in all matters pertaining to the questions in litigation, and, as such agent, it ought to be…