General

Theories Of Recovery In Insurance Cases

January 23, 2011 | Mark S. Humphreys

Weatherford, Parker County, Aledo, Azle, Mineral Wells, and other residents through out Texas would wonder what are the different ways of recovering losses that result from an insurance company or insurance company agent doing something wrong in the sale of an insurance policy.

The Texas Department of Insurance has a web-site that provides some information about insurance companies and insurance agents. There is also information at this site about insurance adjusters.

The Texas Supreme Court hears and issues opinions about situations that have happened across the state dealing with insurance related issues. Plus the lower appeals courts and the local courts have to hear and decide on insurance related cases on a fairly regular basis.

Negligent Misrepresentation

January 22, 2011 | Mark S. Humphreys

People in Grand Prairie, Dallas, Fort Worth, Arlington, Mansfield, Garland, Mesquite, Rowlette, De Soto, Cedar Hill, Duncanville, and other places in Texas would like to think that people are honest with them in their business dealings. The majority of the time, this is true. Rarely does someone intentionally lie about a subject, but occassionly a misrepresentation is made, not on purpose, but accidently. When this is done it is called negligent misrepresentation.

Here is an example of negligent misrepresentation. This is from a 2003 case styled, New York Life Insurance Company, et al v. Phillip M. Miller. This case was decided by the Texas Court of Appeals, Austin.

Here is some background:

First Party Theories Of Recovery

January 20, 2011 | Mark S. Humphreys

Insureds in Dallas, Fort Worth, Grand Prairie, Mansfield, Cedar Hill, De Soto, Duncanville, Red Oak, Lancaster, Arlington, Forest Hills, and other places in Texas do not really understand the different parts of insurance transactions. Let’s try to get an understanding and be more educated about insurance transactions.

To understand the different ways disputes can arise, it is helpful to consider the sequence of events that is likely to occur. At its very simplest, the insurance transaction can be divided into the initial sale of the policy, and subsequent handling of claims. These can be broken down further to include:

(1) The sale of the policy: Initially, the consumer and insurer or insurer’s agent must communicate to establish a contractual relationship. Disputes may arise over what was asked for by the applicant, what was represented by the insurer or agent, or the timeliness of the insurer or agent in providing coverage. Issues may also arise about the truthfulness of the applicant or agent in disclosing information requested by the insurer;

Who Buys Life Insurance?

January 11, 2011 | Mark S. Humphreys

Most people in places like Arlington, Grand Prairie, Dallas, Fort Worth, Mansfield, Benbrook, Burleson, Crowley, Granbury, and other places in Texas will have some sort of life insurance. But how true is that statement?

The Wall Street Journal published on article on October 3, 2010, titled, “Shift to Wealthier Clientele Puts Life Insurers in a Bind”. The article was written by Mark Maremont and Leslie Scism.

This article tells how the life insurance industry has enjoyed beneficial tax treatment for its products for most of the century. Whenever Congress tried to change the tax treatment enjoyed by beneficaries of the policies the life insurance companies could always holler: We protect widows and orphans.

Is A Release Valid

January 9, 2011 | Mark S. Humphreys

A person in Dallas, Fort Worth, Grand Prairie, Arlington, Bedford, Hurst, Euless, Boyd, or any other place in Texas may wonder about the validity of any release they are presented with. Sometimes they are valid and binding and sometimes they are not.

Some guidance about the validity of release can be found in the case styled, Ranger Insurance Company v. John Ward, et al. This is a 2003, case decided by the Texarkana Court of Appeals.

Here are some facts:

Ways Insurance Companies Try To Keep From Paying

January 8, 2011 | Mark S. Humphreys

Insureds in Grand Prairie, Arlington, Dallas, Fort Worth, Richardson, Garland, Mesquite, Carrollton, Irving, Mansfield, Weatherford, Aledo, Azle, and all other cities in Texas may want to be aware of one of the ways an insurance company will try to keep from paying on a claim.

There are many things an insurance company might do and regardless of which one of the many things they may try, the best advice for someone to take is: Consult with an experienced Insurance Law Attorney if it ever happens to you.

One of the things an insurance company might do is file a declaratory judgment action, also called a “dec action”, to have a court declare as a matter of law that there is no coverage on the policy that is at issue.

Sueing The Other Guy’s Insurance Company

January 6, 2011 | Mark S. Humphreys

Here is info for someone in Arlington, Grand Prairie, Dallas, Fort Worth, Mansfield, Garland, Mesquite, Richardson, and other places in Texas to think about.

Normally, an injured party cannot sue the other guy’s insurance company. Any lawsuit is brought against the person who caused the injury or damages and then that person turns the claim over to their own insurance company to defend or pay the claim to the injured party.

Here is a case for thought on this subject. Ben P. Perez and Minerva B. Perez v. Catlin Specialty Insurance Company f/k/a Wellington Specialty Insurance Company. This is a United States District Court for the Western District of Texas case. The opinion was issued on December 20, 2010.

Sueing An Insurance Company

December 28, 2010 | Mark S. Humphreys

Can I sue the insurance company? Someone in Dallas, Fort Worth, Grand Prairie, Arlington, Mansfield, De Soto, Irving, Mesquite, Garland, Carolton, Farmersville, Weatherford, or anywhere else in Texas might ask that question. The answer is the same lawyer answer that a person gets on most legal questions: It depends.

When someone talks of sueing an insurance company that can usually mean one of two things. First, when a person wants to sue their own insurance company, that is something that can be done, assuming the insurance company has committed some wrong against you. This is called a “first party” claim.

When a person has a “third party” claim, then they cannot sue the insurance company. The most normal scenario for this is a car wreck. Usually someone causes a wreck with you, they give you their insurance information, you contact that insurance, that insurance company starts giving you the run around. The result of all this is that you want to sue the guys insurance company. You can’t. This is a third party claim and if you want to sue someone, then you have to sue the person who caused the wreck – not his insurance company. This is a “third party” claim.

Out Of State Auto Insurance

December 26, 2010 | Mark S. Humphreys

What if someone in Mesquite, Garland, Keller, Flower Mound, Haslet, Newark, Benbrook, Hutchins, Dallas, Fort Worth, Arlington, Grand Prairie, or Rockwall is involved in an accident with a driver from Arkansas or some other state? Does that other state insurance have to pay a claim here in Texas if the driver is a family member and the other state’s policy allows an exclusion for family members? Let’s see what Texas says.

The best guidance for the above situation is found in a 1992, Austin Court of Appeals case. The style of the case is, National County Mutual Fire Insurance Company and Consumers County Mutual Insurance Company v. Randall Johnson.

The question in the case for the court to decide was: Does a family-member exclusion in an automobile insurance policy contravene the public policy set forth in the Texas Safety Responsibility Act, which requires liability insurance coverage for all damages that arise out of the operation of a motor vehicle?

Insurance Companies Doing It Again – Raising Rates

December 19, 2010 | Mark S. Humphreys

Insureds in Weatherford, Aledo, Arlington, Azle, Grand Prairie, Dallas, Fort Worth, Mansfield, Bedford, Hurst, Euless, Grapevine, and any other place in Texas will be upset to find out that their insurance rates are going up again. And it is going up in spite of record profits the insurance companies are making. It’s not like they are losing money.

The Austin American Statesman published an article on Wednesday, December 15, 2010. The title of the article is, “Allstate Raising Homeowner Insurance Rates.” This article appears to be reprinted from the Associated Press.

The article informs the reader that Allstate Insurance has notified the Texas Department of Insurance that it will increase homeowner rates. Some of the increases will be up to 10 percent.