Jeanne N. Taylor, D.D.S., D/B/A Jeanne N. Taylor D.D.S., Individually, and on Behalf of All Others Similarly Situated v. State Farm Lloyds, Inc.
Jeanne N. Taylor, D.D.S., appealed a district court's summary judgment in favor of State Farm Lloyds, Inc. Taylor had sued State Farm, alleging that the insurer violated the Texas Insurance Code by issuing her business a multi-peril insurance policy with "hired and non-owned auto liability" coverage without mandatory personal injury protection (PIP) or uninsured/underinsured motorist (UM/UIM) coverage. The Court of Appeals, Third District, at Austin, affirmed the summary judgment, ruling that hired and non-owned auto liability insurance is distinct from "auto liability insurance" as defined in Article 5, Subchapter A of the Texas Insurance Code. The court further concluded that the Texas Department of Insurance (TDI) had the authority under Article 5.02 to regulate such policies under other rating laws, thus making PIP and UM/UIM coverage not mandatory for Taylor's specific policy.