Excess Underwriters at Lloyd's, London v. Frank's Casing Crew & Rental Tools, Inc.

Chief Justice JEFFERSON, Justice MEDINA, Justice JOHNSON, and Justice WILLETT.

On January 6, 2006, we granted respondent’s motion for rehearing. We now withdraw our opinion issued May 27, 2005, and substitute the following.

In Texas, an insurer that settles a claim against its insured when coverage is disputed may seek reimbursement from the insured should coverage later be determined not to exist if the insurer “obtains the insured’s clear and unequivocal consent to the settlement and the insurer’s right to seek reimbursement.” Tex. Ass’n of Counties County Gov’t Risk Mgmt. Pool v. Matagorda…