Bad Faith Insurance

Ways Insurance Companies Mess Up

December 13, 2011 | Mark S. Humphreys

No matter if you are in Weatherford, Mineral Wells, Aledo, Azle, Willow Park, Hudson Oaks, Brock, Millsap, Cool, Peaster, Springtown, or any other place in Parker County, at many points in your life there will be times when you buy insurance and as a result there will be many chances for the insurance company to make a mistake.

The insurance industry is regulated in Texas by the Texas Department of Insurance and complaints can be filed with that department. The courts in Texas handle disputes that become lawsuits and these disputes can wind up in the Texas Supreme Court. Guidelines and laws/statutes for insurance companies to follow are found in the Texas Insurance Code and the Texas Administrative Code.

There are many ways an insurance company can mess up.

How Long Can An Insurance Company Take To Pay A Claim?

December 1, 2011 | Mark S. Humphreys

People in Weatherford, Mineral Wells, Palo Pinto, Aledo, Azle, Hudson Oaks, Willow Park, Brock, Cool, Millsap, Peaster, and other places in Parker and Palo Pinto Counties may wonder how long an insurance company can take to pay a claim.

The answer is found in the Texas Insurance Code, Sections 542.051 thru 542.061. These sections are also known as the Prompt Payment of Claims law.

A careful reading of these sections will see that the time frame for paying an insurance claim depends on many factors. Some of those factors are (1) what type of insurance company is involved, (2) what type of claim is being made, (3) what is involved in the investigation, (4) how much has the claimant cooperated in the investigation of the claim, and variations of the preceding.

Attorney Wins On Insurance Misrepresentation Case

November 24, 2011 | Mark S. Humphreys

Insured people in Grand Prairie, Fort Worth, Dallas, Lake Worth, Benbrook, Saginaw, Crowley, Mansfield, and other places in Tarrant County and Texas need to be cautious when dealing with their insurance company agent.

A case from the Austin Court of Appeals decided in 2000, is a good example of the above. The style of the case is, “Stan Stumph, d/b/a Concrete Concepts/Dallas Fire Insurance Company v. Dallas Fire Insurance Company/Stan Stumph, d/b/a Concrete Concepts.”

Here is some background.

Attorneys Holding Insurance Company Liable For Unfair Business Practices

November 22, 2011 | Mark S. Humphreys

Misrepresentations to people in Grand Prairie, Fort Worth, Dallas, Duncanville, De Soto, Lancaster, Cedar Hill, and other places in Texas can be a reason to sue an insurance company when the misrepresentation causes harm.

This issue is discussed in a 1987, Texas Supreme Court case styled, The Aetna Casualty and Surety Company v. Robert W. Marshall.

In this case the court upheld a verdict wherein The Aetna Casualty and Surety Company, (Aetna) was found to be guilty of making a misrepresentation by contractually promising benefits and then refusing to pay them.

Insurance Complaints

November 20, 2011 | Mark S. Humphreys

People in Grand Prairie, Arlington, Saginaw, Bedford, Hurst, Euless, Grapevine, Colleyville, Grapevine, Keller, Boyd, Newark, or anywhere else in and around Tarrant County should know a little bit about the insurance company they are buying their insurance from.

The Texas Department of Insurance is a good resource to use to learn about almost all insurance companies doing business in the State of Texas. Their web-site is easy to navigate and contains lots of useful information on insurance companies and insurance agents and insurance adjustors. It has information related to licensing and information related to complaints filed. There is also a lot of information about the financial viability of the companies.

The site has lots of general information. Surfing their web-site will usually result in finding out information you did not know and are glad you discovered.

Insurance Lawyer Needed

November 15, 2011 | Mark S. Humphreys

People needing an attorney in Grand Prairie, Arlington, Mansfield, Irving, Fort Worth, Dallas, and other places in Texas will probably get confused on this case and realize the necessity of hiring an experienced Insurance Law Attorney.

The Amarillo, Court of Appeals, issued an opinion on October 17, 2011, styled, In Re Farmers Texas County Mutual Insurance Company. This is a case where Farmers was seeking the issuance of a writ of mandamus from this appeals court. Farmers was asking this court to issue an order to Judge Carter Schildknecht of the 106th Judicial District Court of Garza County, Texas, to abate trial on extra-contractual claims asserted by real-party-in-interest, Terry Henrie. This court denied Farmers request.

Here is some background.

Bad Faith Insurance Claims

September 18, 2011 | Mark S. Humphreys

An insured in Grand Prairie, Arlington, Fort Worth, Dallas, or anywhere else in North Texas might wonder how an under-insured motorist claim works. That is a long answer, but here is how some of it worked in this situation.

The Dallas Court of Appeals issued an opinion on August 12, 2011, in the case styled In Re State Auto Property & Casualty Insurance Company and Hotchkiss Family Holdings, Inc D/B/A Hotchkiss Insurance Agency. This is a mandamus proceeding complaining of two orders of the trial court. Here is some background information.

Graeber and Kori Anderson were involved in an auto accident in which liability was disputed. After Graeber settled his lawsuit against Kori Anderson within Anderson’s policy limits, he sued State Auto, two of its adjusters, and his local insurance agent, Hotchkiss, seeking underinsured (UIM) benefits and extra-contractual damages for bad faith and other claims. State Auto asked the court to sever and abate the UIM claims from the extra-contractual claims. This was denied, but separate trials with separate juries was ordered, as well as a stay of discovery and proceedings on the extra-contractual claims until the disposition of the UIM claim.

Timely Payment Of Claims

September 15, 2011 | Mark S. Humphreys

An insured in Weatherford, Mineral Wells, Aledo, Hudson Oaks, Willow Park, Peaster, Azle, Springtown, Millsap, Brock, Cool, Poolville, or anywhere else in Parker County would expect any claim they make to be paid in a timely manner. So what happens if it is not paid in time?

A 1995, Amarillo Court of Appeals case styled, Doris Rusk, Roger Lusk, and Russell D. Daves v. Honorable Cecil G. Puryear, addressed this issue.

Keep in mind that first, an experienced Insurance Law Attorney should be consulted to help in these situations. Next, here is what happened in this case.

Requirement Of An Examination Under Oath (EUO)

September 4, 2011 | Mark S. Humphreys

Someone in Grand Prairie, Arlington, Hurst, Euless, Bedford, Grapevine, Keller, Saginaw, Roanoke, Fort Worth, or anywhere else in Tarrant County might ask, “Why do I have to submit to an examination under oath?” Here is a case that might shed some light to that question.

The case is styled, Shannon Trahan and Joleen Trahan Woods v. Fire Insurance Exchange and Texas Farmers Insurance. The opinion in this case was issued in 2005, by the Beaumont Court of Appeals. This case is an appeal from a summary judgment rendered in favor of Fire Insurance Exchange (FIE) and Texas Farmers Insurance (TFI). This court upheld the summary judgment.

As some background, on December 31, 2000, the Trahan’s home and automobile were destroyed in a fire. The Trahans filed a fire loss claim. On February 8, 2001, they signed a Proof of Loss form. On February 14, 2001, FIE requested the Trahans submit to examinations under oath (EUOs). Finally, on August 29, 2001, the Trahans submitted to the EUOs, and they were signed and sworn to on September 20, 2001. On October 8, 2001, FIE accepted the Trahans fire loss claim and issued checks.

Deceptive Trade Practices And Homeowners Policy

August 21, 2011 | Mark S. Humphreys

Here is something that insured people in Grand Prairie, Weatherford, Arlington, Fort Worth, Dallas, Mansfield, and other places in Texas might be curious about. What happens if you have an insurance policy on your house. Next, the house burns down and a claim is made and denied. Next, the homeowner dies! Can the heirs pursue a claim against the insurance company for violations of the Texas Deceptive Trade Practices Act or violations of the Texas Insurance Code?

The Fourth Court of Appeals District of Texas issued an opinion on July 27, 2011, that addressed this question. The style of the case is, Texas Farm Bureau Mutual Insurance Co. v. Shannan Rogers and Cristen Bazan, as legal heirs of Cynthia Bazan, deceased. This case was tried to a jury in the 198th Judicial District Court, Kerr County, Texas, which returned a verdict favorable to the heirs. This appeals court reversed. Here is some background.

In 2008, Cynthia Bazan purchased a house and was required to purchase insurance by the mortgage company. She applied for a policy with Farm Bureau. Farm Bureau initially refused coverage based on a wood-burning stove having inadequate protection. This was remedied and a policy was issued. Later, a fire completely destroyed Bazan’s house and all the contents. Bazan made a claim and Farm Bureau began an investigation which included a background check of Bazan and a “cause and origin” investigation of the fire. Farm Bureau obtained Bazan’s criminal record. Farm Bureau’s fire investigator listed the cause of the fire as “undetermined.”