Embrey v. Royal Insurance Co. of America

The issue in this case is whether Royal Indemnity Company 1 is obligated to pay prejudgment interest, in addition to the policy limits, on a claim by a third party against its insured. We conclude that the insurance policy does not require the pay ment of that prejudgment interest. Accordingly, we affirm the court of appeals’ judgment.

I

Royal Indemnity Company issued a commercial automobile liability policy to R & D Harris Transportation, Inc. (“R & D”). The policy had aggregate limits of $1 million and was written on a standard form promulgated by the Texas State Board of Insurance (now…