The law in Texas regulating the timely payment of claims is the Texas Prompt Payment of Claims Act. It starts in the Texas Insurance Code, Section 542.051. The 18% penalty is found in Section 542.060. One commentator in, Couch on Insurance, has recognized that statutes which impose penalties for denying…
Under the Texas Prompt Payment of Claims Act, what is subject to the 18% penalty? This will be a multi blog topic. Courts are split on the issue of whether the 18% award is subject to prejudgment interest. See the difference in 1995, Fort Worth Court of Appeals opinion, Marineau…
The Texas Prompt Payment of Claims Act is found in the Texas Insurance Code, Section 542.051. Under Section 542.060, a violation of the Prompt Payment of Claims Act allows recovery of an 18 percent interest on damages. The question then becomes does the 18 percent apply when there is trebling…
When an insurance company makes an unjustified delay in paying a claim the Texas Prompt Payment of Claims Act allows interest on the amount of the claim at the rate of 18 percent a year as damages. This statute is found in the Texas Insurance Code, Section 542.060(a). But the…
Here is a 1974, opinion from the 14th Court of Appeals that is still good law today. The opinion is styled, Janice Sue Milton v. Preferred Risk Insurance Company et al. This is a lawsuit to recover benefits under the uninsured motorist provisions of an automobile policy. The question for…
Insurance lawyers can generally get better out-comes for their clients when a case is litigated in a State or County Court versus in Federal Court. There are ways of staying out of Federal Court but the way tried in this September 2019, opinion from the Southern District of Texas, Houston…
Lawyers who handle lawsuits against insurance companies know that it is not uncommon for an insurance company to file a counter-suit for their court costs and attorney fees. So, the question is, if an loses his lawsuit against the insurance company, will the insurance company win in its counter-claim against…
Sending a proper notice letter is the first step in a legal process against an insurance company when an insured believes the insurer has improperly handled a claim. This is even more relevant under the new section of the Insurance Code, Section 542A.003. This is also required in Section 541.154. …
Insurance agents who do not sell the insurance policy that was requested by their customer can be held liable for selling the wrong policy or misrepresenting the policy. This is illustrated in the Northern District of Texas, Dallas Division, opinion styled, Steve and Ellen Malone v. Blue Cross and Blue…
Insurance policies are of two types of it relates to the coverage of a claim. One is called an “occurrence” policy. An occurrence policy covers losses that occur during the policy period. The other type of coverage is a “claims made” policy. A claims made policy covers claims that are…