Interpreting An Insurance Policy

Insurance Declarations Page

March 14, 2013 | Mark S. Humphreys

Weatherford lawyers who handle insurance cases need to be able to read and understand a declarations page. So should attorneys in Mineral Wells, Aledo, Springtown, and other parts of Parker County and Palo Pinto County.

The insuring clause is the insurance company’s agreement to provide coverage to the insured. One policy may include several insuring clauses.

The insuring clause is the foundation of the agreement and forms the basis for all obligations owed to the insured. Unless this clause provides coverage for a claim, it is unlikely that any other term of the policy will do so.

Insurance Policy Declarations Page

March 12, 2013 | Mark S. Humphreys

Dallas insurance lawyers need to be able to read an insurance policy declarations page. So do Grand Prairie, Richardson, Mesquite, Garland, and Carrollton lawyers.

Insurance policies normally have a declarations page or pages. The declarations page sets forth the identity of the insured, the policy limits, and the duration of coverage, and it identifies the attached policy forms. The San Antonio Court of Appeals and Houston Court of Appeals 14th, has said the main function of the declarations page is to customize the policy for the particular insured and the specific risks covered by the policy.

What insurance lawyers need to know is that in determining the coverage provided by an insurance policy, always to carefully review the declarations page, which will list the various forms and endorsements that constitute the complete policy. Comparing the declarations page to the actual policy is important because sometimes the insurer attaches the wrong forms or endorsements. In some situations, insurers have inadvertently omitted forms or endorsements at the time the policy is sent to the insured. By comparing the list of forms and endorsements set forth on the declarations page, it is possible to verify the precise forms and endorsements issued to the insured.

Insurable Interests

March 3, 2013 | Mark S. Humphreys

Fort Worth insurance attorneys need to be able to advise a person whether or not they are entitled to recover under a policy of insurance. Just because a person has insurance does not mean they are automatically entitled to make a recovery on lost property. From a legal standpoint – a person must have an insurable interest.

A 1993, Dallas Court of Appeals case sheds some insight into how a person who has insurance on a piece of property, not be be able to recover for the loss of that property. The case is styled, Jones v. Texas Pacific Indemnity Company.

Here is some background:

Examinations Under Oath

February 24, 2013 | Mark S. Humphreys

Dallas insurance attorneys need to know some basics about an examination under oath.

Almost all insurance policies require that the insured submit to an examination under oath upon request. The Corpus Christi Court of Appeals issued an opinion in 2011, related to this issue.

The style of the case is “In Re Cypress Texas Lloyds” and has the following relevant information:

Grounds For Rescission By The Insured

January 27, 2013 | Mark S. Humphreys

Mineral Wells attorneys and those in Graford, Weatherford, Cool, Millsap, Garner, and other places in Parker and Palo Pinto Counties need to understand how insurance policies work and are interpreted.

There is a Texas Supreme Court opinion issued in 1999, that is worth reading. The case is styled Urrutia v. Decker.

This case required the Court to determine the validity of liability insurance a truck leasing company provided to its customer as part of a rental transaction. Based on representations that $20,000 was all the insurance available, the claimant settled his bodily injury claim for that amount. When he later discovered the nature of the leasing company’s insurance arrangement, he sued the leasing company and its customer, seeking to set aside the previous settlement. The claimant urged that the settlement was obtained by fraud or resulted from the parties’ mutual mistake about the insurance available to pay his claims.

Expiration Of Policy

January 15, 2013 | Mark S. Humphreys

Grand Prairie insurance attorneys and those in Irving, Duncanville, Arlington, and other places in Texas need to understand issues that can arise related to the expiration of an insurance policy.

A Texas Supreme Court opinion decided in 1985, said that an insurance agent who receives commissions from a customer’s payment of insurance policy premiums has a duty to reasonably attempt to keep the customer informed about his or her insurance policy expiration date upon receiving information regarding the expiration date intended for that customer. This case is styled, Kitching v. Zamora. An Amarillo Court of Appeals case held in 1992, that an agent had a duty to reasonably attempt to keep a mortgagee informed about the policy expiration date and non-renewal. This case was styled, Horn v. Hedgecoke Insurance Agency.

A 1990, Dallas Court of Appeals case says that when the insured “forfeited” (i.e., cancelled or non-renewed) an insurance policy and the insurance company has knowledge of the existence of facts that constitute forfeiture of the policy, an unequivocal act done after the forfeiture has occurred, that recognizes the continued viability of the policy or that is wholly inconsistent with a forfeiture, constitutes waiver of the forfeiture. This case is styled, Schachar v. Northern Assurance Company. To bring about a waiver of the forfeiture and reinstatement of the policy, three conditions must be met:

Canceling Insurance Policy

January 12, 2013 | Mark S. Humphreys

Dallas attorneys need to know the different ways that insurance policies can be cancelled and who can cancel them.

Here are a few ways of cancellation a person needs to know about.

The 1967, opinion, Ford Motor Credit Company v. Commonwealth County Mutual Insurance Company, tells us that the insured may cancel an insurance policy by giving the precise notice required by the terms of the policy. This opinion was written by the Beaumont Court of Appeals.

When Cancellation Of An Insurance Policy is Permissible

January 6, 2013 | Mark S. Humphreys

Parker County attorneys need to know when an insurance company can properly cancel a policy and when it can not.

Insurance companies may cancel policies described on the January 5, 2013, blog at this site in the following situations:

(1) if the named insured does not pay the premium, or any portion of it, when due;

Notice For Cancellation

January 5, 2013 | Mark S. Humphreys

Weatherford insurance attorneys need to know the required notices to be sent by an insurance company when canceling a policy.

When an insurance company decides to cancel the liability coverage, it must deliver or mail to the first-named insured under the policy, at the address shown on the policy, notice of cancellation not less than the 10th day before the date on which the cancellation takes effect. This rule is found in the Texas Insurance Code, Section 551.053. The notice shall state the reason for the cancellation. The statement must fully explain any decision that adversely affects the policyholder by denying him or her coverage or continued coverage and must:

(1) state the precise incident, circumstance, or risk factor applicable to the policyholder that violate the guidelines;

Policy Cancellation Limitations

January 3, 2013 | Mark S. Humphreys

Dallas insurance lawyers need to know the limitations related to canceling insurance policies.

Here is some guidance:

As described below, the Insurance Code limits the insurer’s right to cancel coverage under the following types of liability insurance coverage: