Bad Faith Insurance

Lawyer Getting Knowing Violation Of Insurance Code

February 16, 2012 | Mark S. Humphreys

Insured people in Grand Prairie, Fort Worth, Arlington, Dallas, and other places in the Dallas and Fort Worth metroplex would probably not understand how to hold an insurance company responsible for a knowing violation of the Texas Insurance Code. Here is a case where the lawyer had success in this area of the law.

The style of the case is, State Farm Lloyds v. Johns. The case was decided by the Dallas Court of Appeals in 1998. Here are the facts.

Ms. Johns’ house was built in 1964. Johns moved in to her house in 1972. In the summer of 1990, Johns noticed evidence of extensive foundation problems including door mis-allignment, significant cracks in the interior walls and a slope to the floor. Repairmen later discovered two plumbing leaks under the house. Johns made a claim for foundation damage alleging that the plumbing leaks caused the soil underneath the house to expand resulting in an upheaval of the foundation, thereby damaging the structure. State Farm hired a foundation expert, Mr. Betting, who concluded that Johns’ foundation problems were not caused by the plumbing leaks, but rather asserted that the damage occurred from natural soil movement common to north Texas. State Farm’s homeowners policy excluded damage caused by ordinary settlement. Based on the exclusion State Farm denied the claim.

Lawyer And Bad Faith Insurance

February 14, 2012 | Mark S. Humphreys

Someone in Weatherford, Fort Worth, Aledo, and other places in Tarrant and Parker County might have a hard time understanding what is “bad faith” in most insurance situations. Here is a case that gives some insight into how it works.

The case is State Farm Lloyd’s v. Johns and was decided by the Dallas Court of Appeals in 1998. Here are some of the background facts.

Johns’ house was built in 1964. Johns moved in to her house in 1972. In the summer of 1990, Johns noticed evidence of extensive foundation problems including door misalignment, significant cracks in the interior walls and a slope to the floor. Repairmen later discovered two plumbing leaks under the house. Johns made a claim for foundation damage alleging that the plumbing leaks caused the soil underneath the house to expand resulting in an upheaval of the foundation, thereby damaging the structure. State Farm concluded that Johns’ foundation problems were not caused by the plumbing leaks, but rather asserted that the damage was caused by ordinary settlement. Based on the exclusion, State Farm denied the claim.

Late Payment Of Claims

January 24, 2012 | Mark S. Humphreys

When does someone in Grand Prairie, Fort Worth, Burleson, Crowley, Lake Worth, Benbrook, Alvarado, Keene, Joshua, or anywhere else in Texas, know that the insurance company is taking too long to pay the claim?

There is no easy answer to the question. The laws related to the time frame for payment of claims are found in the Texas Prompt Payment of Claims Act. A reading of these laws is confusing. Even an experienced Insurance Law Attorney will have to read the law, look at the facts in the case then reread the law and see how it applies to the facts of the case. A big part of this law is the penalty the insurance company is subject to having to pay for violations of the law. So how is this penalty calculated?

The Fort Worth Court of Appeals decided a case in 2008, that provides some guidance. The case is styled, GuideOne Lloyd’s Insurance Company v. First Baptist Church of Bedford. Here are some relevant background facts:

Hire An Attorney When The Insurance Company Refuses To Defend

January 15, 2012 | Mark S. Humphreys

Insureds in Weatherford, Mineral Wells, Aledo, Azle, Willow Park, Hudson Oaks, Springtown, Millsap, Brock, and all other places in Parker County have to protect themselves immediately by seeing an Insurance Law Attorney when their insurance company refuses to defend them in a lawsuit.

A 1998, Dallas Court of Appeals case serves as an example of what happens when someone delays in hiring an attorney. The style of the case is, Greenberg, et al v. Cigna Lloyds Insurance Company. Here are some facts:

Greenburg was the independent executor as well as the trustee for his brother’s children. The children eventually brought suit against Greenberg in Probate Court alleging among other things that Greenberg was liable for improper self dealing and breach of fiduciary duty. After receiving notice of the suit, Greenberg contacted two insurance companies that had secured insurance policies, including commercial general liability policies. Greenberg and his sons were told that there was no coverage under the policies. Greenberg hired an attorney to represent him in the probate suit. Judgment was rendered against him. Later, he entered into a compromise settlement agreement under which Greenberg agreed to pay $1.1 million. The trial in the underlying probate case began on September 25, 1989. In September 1994, Greenberg filed suit against Cigna as well as other insurance companies alleging breach of contract, breach of fiduciary duty, breach of duty of good faith and fair dealing, negligence, gross negligence, breach of express and implied warranties, violations of Texas Insurance Code, Section 541.060, and the DTPA, and intentional misrepresentation. Cigna filed a motion for summary judgment which was granted on the basis of a limitations defense. Greenberg then filed this appeal.

Life Insurance Claims

January 14, 2012 | Mark S. Humphreys

Residents of Grand Prairie, Arlington, Fort Worth, Dallas, and other areas in the State of Texas would want to understand what happens when a policy payment is missed. The following case is one where the policy ended up lapsing. An experienced Insurance Law Attorney may have been able to get a different result.

The case is State Farm Life Insurance Company v. Beaston. The case decided in 1995, by the Texas Supreme Court. Here is some background.

Beaston purchased a graded premium whole life policy from State Farm. The premium on the policy was due on 12/28/93. The thirty-one day grace period expired on 1/28/94. Three days after the expiration of the grace period, Beaston died in an automobile accident. State Farm refused to pay benefits because coverage had expired. Beaston’s wife, the beneficiary, brought suit alleging that the policy remained in force because of its dividend-at-death provision. The trial court found the policy ambiguous and instructed a verdict in favor of Beaston with respect to coverage.

Insurance Company Refusing Claim

January 12, 2012 | Mark S. Humphreys

People in Grand Prairie, Fort Worth, Dallas, Arlington, Hurst, Euless, Bedford, Grapevine, and other places in the DFW metroplex would want to know why an insurance company refuses a claim and what the consequences are. The following case may give some insight.

This is a 1999, Fort Worth Court of Appeals case styled, “Mid-Century Insurance Company v. Foreman.” Here are some facts:

Joyce Foreman was involved in a car accident with anther driver, Karl Buehner. Foreman’s auto policy included $250,000 in underinsured motorist coverage. Foreman settled with Buehner’s insurance carrier for approximately $20,000. It is disputed whether or not Mr. Foreman spoke with the Mid-Century agent before the settlement. Because of extensive medical bills, the Foreman’s filed an uninsured motorist claim with Mid-Century. Fisher, a Mid-Century adjuster, mailed an acknowledgement and request for information. Fisher spoke with Mr. Foreman who told her that they had hired a lawyer. Fisher stopped all contact with the Foremans.

Bad Faith Insurance And Forced To Hire Attorney

January 3, 2012 | Mark S. Humphreys

Few people in Weatherford, Mineral Wells, Aledo, Willow Park, Hudson Oaks, Azle, Springtown, Millsap, Cool, Brock, or anywhere else in Parker County wants to be forced to hire an attorney to submit an insurance claim. But, like it or not, that is what most people have to do to get fair treatment.

A recent article on insurance singles out Allstate Insurance Company, but this same story could be told about many of the insurance companies. Here is what some of the article said:

Unlike may other businesses, the insurance industry is bound by law to act in good faith with its customers. Because of their protective role in the lives of ordinary citizens, insurance companies have long operated as semi-public trusts. But since the mid 1990’s, a new profit hungry model, combined with weak regulation, has upended that ancient contract. In Texas, the Texas Department of Insurance is the agency that is suppose to be providing oversight on the insurance industry.

Insurance And Mental Anguish Claims

December 27, 2011 | Mark S. Humphreys

When someone in Weatherford, Mineral Wells, Aledo, Willow Park, Hudson Oaks, Azle, Springtown, Millsap, Brock, or anywhere else in Texas really gets mistreated in an insurance case, that person will probably have a claim for mental anguish. So, how does that work?

A 2004, Corpus Christi Court of Appeals case gives some insight on the answer. The style of the case is, Minnesota Life Insurance Company v. Elia L. Vasquez. Here is some background.

Elia Vasquez alleged that Minnesota Life Insurance Company unreasonably delayed payment of the proceeds of an accidental death policy that insured the life of her deceased husband. As part of the lawsuit, Vasquez sued for mental anguish damages. The jury awarded her $60,000 in mental anguish damages. There were other issues in the case which are not discussed here.

Attorney Bad Faith Issues To Know

December 17, 2011 | Mark S. Humphreys

Bad Faith attorneys in Grand Prairie, Grapevine, Colleyville, Keller, Saginaw, Newark, Southlake, Roanoke, and other places in the DFW metroplex might find this case worth knowing.

The United States District Court, Southern District of Texas, Houston Division, issued an opinion in November 2011, in the case styled “839 East 19th Street, LP v. Lexington Insurance Company, et al.” This is a case wherein a motion for summary judgment filed by one of the defendants, Unified Building Sciences, Inc. (UBS), was granted.

Here is some background:

Attorneys And Insurance Law

December 15, 2011 | Mark S. Humphreys

Attorneys in Weatherford, Grand Prairie, Fort Worth, Mineral Wells, or anywhere else in Texas have to have an understanding of insurance law to handle insurance disputes effectively for clients.

There are different ways of recovering when insurance disputes arise. Many of these theories of recovery have common elements.

Insurance transactions tend to resemble one another, so disputes arising from them tend to resemble one another. There are only so many ways that an insurance company and their customer can get crossways. Most situations present recurring problems that can be grouped into categories. Insurance law is even more precedent-driven than other areas of law, as courts try to construe similar policy language consistently. It is not surprising that many cases start to look alike.