Financial Industries Corp. v. XL Specialty Insurance Co.

This case comes before us on a certified question from the United States Court of Appeals for the Fifth Circuit. Pursuant to article V, section 3-c of the Texas Constitution and Texas Rule of Appellate Procedure 58.1, we answer the following question:

Must an insurer show prejudice to deny payment on a claims-made policy, when the denial is based upon the insured’s breach of the policy’s prompt-notice provision, but the notice is nevertheless given within the policy’s coverage period?

XL Specialty Ins. Co. v. Fin. Indus. Corp., 259 Fed.Appx. 675, 678 (5th Cir.2007), certified question,…