Two insurance companies both provided primary coverage for the same insured. When settling a lawsuit for $1.5 million, one insurer paid $1.35 million while the other paid only $150,000. The Texas Supreme Court ruled that the insurer who overpaid cannot sue the other insurer for contribution or reimbursement. Once the injured party is fully paid, the insurance dispute is over—neither insurer can recover from the other.
If you're named as an additional insured on multiple policies, understand that co-primary insurers cannot force each other to split settlement costs equally after the fact
Don't rely on one insurer to recover overpayments from another insurer—the settlement amount is final once the injured party accepts it
When multiple insurers cover the same risk, negotiate settlement contributions upfront before paying, not afterward