A state court of appeals affirmed that the trial court properly interpreted territorial limitations in a general agency agreement to market the insurer’s policies, in part, by looking to warranty limitations in a reinsurance treaty entered into between the insurer and two third-party reinsurers. Apex Lloyds Insurance Company sued its managing general agent, Texas All Risk General Agency Inc. (“TAR”), after TAR allegedly breached the territorial limitations in its agency agreement designed to limit large claims exposure, and included in the agreement to satisfy the department of insurance and Apex’s reinsurers. The reinsurance treaty, which TAR was aware of at the time it entered into the agreement with Apex, provided that only 20% of policies could be sold in a certain county. Texas All Risk General Agency, Inc. v. Apex Lloyds Insurance Co., No. 10-10-017 (Tex. App. Nov. 10, 2010).