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AMERICAN STAR INS. CO. v. GIRDLEY

No. 92-5084.

12 F.3d 49 (1994)

AMERICAN STAR INSURANCE CO., f/k/a Classified Insurance Corporation, Plaintiff-Appellee, v. Robert F. GIRDLEY and Virginia L. Girdley, Defendants-Appellants.

United States Court of Appeals, Fifth Circuit.

Rehearing Denied February 17, 1994.

Attorney(s) appearing for the Case

Carolyn Findley Price, Arlington, TX, for defendants-appellants.

James W. Litzler, Steve K. Rutherford, McLeroy & Litzler, Sulphur Springs, TX, for plaintiff-appellee.

Before HIGGINBOTHAM, DAVIS, and SMITH, Circuit Judges.

PATRICK E. HIGGINBOTHAM, Circuit Judge:

We hold that an agreement requiring the agent of a bail bond company to indemnify the company is not an illegal reinsurance contract under Texas law.

I

Robert F. Girdley and Virginia L. Girdley agreed to act as agents of American Star Insurance Company1 in the bail bond business. The contract required the Girdleys to indemnify American Star for any loss incurred on a bail bond issued...

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