Lawyers who handle insurance claims need to know how insurance and other related laws are interpreted by the Courts. The Texas Supreme Court made clear in its 1995 opinion styled, State Farm Life Insurance Co. v. Beaston, that the Insurance Code sections the Texas Deceptive Trade Practices Act (DTPA) were…
Insurance lawyers should understand the interaction between the Texas Insurance Code and the Texas Deceptive Trade Practices Act (DTPA). Texas Insurance Code, Section 541.151(2) cross references and prohibits conduct defined in Section 17.46(b) of the DTPA. The DTPA statute applies to all types of consumer transactions, not just insurance, so…
What are examples of misrepresentations made by insurance companies that they can be held liable for making? Different types of misrepresentation are prohibited by the Texas Insurance Code. Misrepresentations are also unlawful under the incorporated DTPA, Section 17.46(a). These misrepresentations also include non-disclosure. Section 541.051 broadly prohibits making any statement…
In an answer to the above question, one attorney said, “It’s hard to define but I know it when I see it.” That response is fine but what a regular insured person thinks is clearly “bad faith,” the Courts look at differently. The Texas Insurance Code, Section 541.060, sets forth…
Let’s list some of the conduct that is actionable against an insurance company. The Texas Insurance Code, Chapter 541, defines and prohibits unfair and deceptive insurance practices. The Sections include Sections 541.001 to 541.061, 541.151 to 541.162, and 541.453. Prior to April 1, 2005, the statute appeared as Article 21.21,…
Insurance lawyers will often get a call from a potential new client and this potential new client describes a pretty good case against the insurance company. But as the discussion progresses the attorney learns the event the potential new client is describing or relating to the attorney happened many years…
So, who has the burden of proof in an insurance case, the insurance company or the insured. Like most issues in the law, it depends. According to the 1994, San Antonio Court of Appeals opinion styled, Telepak v. United Service Automobile Association, the insured has the initial burden to prove…
There is a part of the claims handling process that insureds need to be wary about. That part is when an insurance company asks the person making a claim to submit to an Examination Under Oath (EUO). If the insurance contract provides for it, the insurance company may require an…
Most life insurance policies have a section / rider that allows for an acceleration of the life insurance benefits. It is also a source of litigation because the life insurance companies have a strong tendency to deny claims made for these benefits. Insure.com published an article on this subject in…
Most property insurance policies contain appraisal clauses. These clauses define a process for appraising the value of the damaged property, if the parties cannot agree. Common provisions call for each party to choose an appraiser. Those appraisers then choose a neutral third appraiser, called the umpire. If the parties or…