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FINANCIAL INDUSTRIES v. XL SPECIALTY INS.

No. 07-1059.

285 S.W.3d 877 (2009)

FINANCIAL INDUSTRIES CORPORATION, Petitioner, v. XL SPECIALTY INSURANCE COMPANY, Respondent.

Supreme Court of Texas.

Decided March 27, 2009.

Attorney(s) appearing for the Case

Frederick B. Wulff, Christopher D. Kratovil and Casey P. Kaplan, K&L Gates, LLP, Dallas, TX, for Appellant.

Benjamin H. Hathaway, Elizabeth Bloch, Daniel R. Smith, Brown McCarroll, L.L.P., Austin, TX, Cathy A. Simon, Marc E. Rindner and Gabriela Richeimer, Ross, Dixon & Bell, LLP, Washington, DC, for Appellee.

Chief Justice JEFFERSON delivered the opinion of the Court.

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...

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