Here is a case involving a plumbing leak. What is a little unusual about this case is the insurance company is attempting to sue Texas Insurance Code, Section 542A.006(c), to have this case heard in Federal Court rather than the State Court in which the case was filed. The style…
For insurance lawyers, a favorable way to increase the odds of a win or favorable settlement is to be able to litigate a case in State Court rather than Federal Court. Here is a win for keeping a case in State Court. This is a 2019, opinion from the Eastern…
Here is a strange case. The insurance company is claiming their insured has not adequately proven he has an insurance policy with the insurer. This opinion is from the Northern District of Texas, Fort Worth Division. It is styled, Michael Harris v. Meridian Security Insurance Company et al. In this…
Insurance lawyers need to know the time lines for an insurance company to pay claims under the Texas Prompt Payment of Claims Act and they need to know the legal reasons for those time lines being extended. Pursuant to Texas Insurance Code, Section 542.056(d), if the insurance company cannot accept…
Here is a homeowners claim that has a different twist to it. The case is from the Southern District of Texas, Corpus Christi Division, and is styled, Kenneth Stokley v. Allstate Texas Lloyds. In this case the Plaintiff, Stokley filed a Motion to Compel Appraisal and Allstate is trying to…
The next question in this series related to violations of the Texas Prompt Payment of Claims Act is, what are some of the defenses the insurance company has for not making prompt payment on a claim. The statute contains several provisions by which insurance companies may extend the deadlines. While,…
Additional remedies under the Texas Prompt Payment of Claims include attorney fees. Attorney fees under the statute are governed by the 1997, Texas Supreme Court opinion, Arthur Andersen & Co. v. Perry Equipment Corp. In that case, the court held that a reasonable fee must be based on eight factors…
Under the 18% penalty imposed by Texas Insurance Code, Section 542.060, what is the effect if there is a finding of multiple violations? Does the result of result of multiple violations result in multiple penalties? In applying the Texas Prompt Payment of Claims Act and Section 542.060, the 1999, Tyler…
Many employer based insurance plans fall under ERISA. Understanding how the courts look at ERISA cases is important for life insurance lawyers to be able to discuss a case with a client. The United States Court of Appeals for the Fifth Circuit recently ruled on a case that involved a…
How to label the 18% penalty in the Texas Prompt Payment of Claims Act is a topic of much discussion in Insurance Law circles. How is Section 542.060 to be labeled? Maybe the damages awarded under the prompt payment statute are awarded simply for a failure to comply with a…