Ersland admitted to the shooting but gave conflicting accounts of what happened.
Prosecutors at his trial contended he went too far when he shot Parker again because the unarmed robber by then was unconscious from the head wound and not moving on the floor.
Ersland's attorneys said he was a hero who defended two female co-workers and himself.
The insurance company filed its own lawsuit last year, asking a judge to rule its policy with Reliable Discount Pharmacy did not cover Ersland's actions.
The judge, though, ruled against Pharmacists Mutual Insurance Co.
Jennings' attorney, Kwame Mumina, told The Oklahoman after the hearing, “I think it was a fair settlement for everybody.”
He also said, “It's a difficult situation I think for everybody. And, unfortunately, the only way to resolve some of these things is through the court system. And that avenue was undertaken, not for any type of retribution or anything like that but simply because the justice system allows it.”
Part of the money from the settlement would have gone to Parker's father but instead is going to DHS because the father owes thousands of dollars in back child support. DHS is the state agency that works to collect past-due child support from delinquent parents.