Liberty Mutual Insurance Co. v. Cruz

This is a summary judgment case concerning the liability of an insurance company for a default judgment rendered against its insured without notice of suit to the insurance company. ■ We hold that failure to comply with the insurance policy notice provision by not providing notice of suit until after a default judgment is final, when the insurer does not otherwise have actual knowledge of the suit, prejudices the insurer as a matter of law and relieves the insurer of liability -under the policy. We therefore reverse the judgment of the court of appeals and render judgment that Mr. and Mrs.…