Thanks Brent for clarifying some of this issues on this thread. And thanks to everybody else for the comments. I called a lawyer out of the phone book this morning. They said for me to contact the Texas
Department of Insurance and file a complaint with them. I'm in the process of doing that now. The lawyer said that my complaint will be reviewed and depending on what they decide, a letter could be sent to Progressive telling them to pay the claim. Apparently a letter from these folks scare insurance companies. Hopefully I should know something next week.