DeLeon v. Lloyd's London, Certain Underwriters

PATRICK E. HIGGINBOTHAM, Circuit Judge:

A corporation elected to self insure under Texas workers’ compensation laws. As part of its opt-out from the protections of workers’ compensation, the company purchased from Lloyd’s, London insurance upon the life of its employees, payable to itself. An employee was fatally injured in the course of work, and her representative obtained a substantial sum in settlement of a claim that the death was caused by the company’s negligence. Lloyd’s paid the policy proceeds to the corporation. The representative of the deceased employee later learned of the life…