Texas Public Policy on Insuring Punitive Damages: Time for a Fresh Look

The comment will first define the threshold requirement of actual knowledge of the wrong as an indicator that punitive damages are intended as punishment. Next, the comment will look at how Texas case law has defined punitive damages to determine whether the compensation aspect of punitive damages is an independent justification such that insuring punitive damages does not contravene public policy. The comment will consider statutory law as a basis for finding that public policy bars insuring punitive damages. Finally, this comment explores how the supreme court\u27s latest pronouncement on the purpose of punitive damages, Transportation Insurance Co. v. Moriel, lays the foundation for denying insurance of punitive damages