Uninsured/Underinsured Coverage

Underinsured Motorist Claim And Liability

March 13, 2011 | Mark S. Humphreys

Drivers in Grand Prairie, Weatherford, Arlington, Fort Worth, Dallas, Irving, Duncanville, De Soto, Mansfield, Crowley, Burleson, Benbrook, and other places in Texas may wonder how the liability portion and underinsured portion of their automobile policy work. To begin with, there is not a short simple answer. Each situation has to be looked at and the policy read in conjunction with a particular fact scenario. Certainly one of the first things to do is to get with an experienced Insurance Law Attorney. That attorney would know the questions to ask and what to look at to give reliable guidance.

Here is a case for thought. The case is George Rosales and Ester Rivera v. State Farm Mutual Automobile Insurance Company. This case was decided by the Austin Court of Appeals in 1992.

George Rosales and Ester Rivera sued State Farm Mutual Automobile Insurance to recover underinsured motorist (UIM) benefits under a Texas Standard Liability Policy issued to Sharon Barrett. The trial court concluded that Rosales and Rivera could not obtain liability and UIM benefits under a single insurance policy, and granted summary judgment in favor of State Farm. This appeals court affirmed the trial court ruling.

Rejection In Writing Of PIP & UM/UIM

February 26, 2011 | Mark S. Humphreys

Insureds in Grand Prairie, Arlington, Irving, Grapevine, Coppell, Keller, Saginaw, Lake Worth, Aledo, Hudson Oaks, Azle, Springtown, Burleson, Benbrook, and other places in Texas need to have an understanding of how Personal Injury Protection (PIP) and uninsured / underinsured (UM/UIM) benefits work in an automobile policy of insurance. Here is a case that gives some insight.

The case is styled, Old American County Mutual Fire Insurance Company v. Zeferino Sanchez. This is a 2004, case decided by the Texas Supreme Court.

Texas Insurance Code Sections, 1952.101 and 1952.152 provide that “any insured named in the policy” may reject UM/UIM and PIP coverages. The question in the case is – whether the insured spouse of the person listed as the “named insured” in the declarations page of a policy may reject those coverages.

Insurance Policy Conditions

February 13, 2011 | Mark S. Humphreys

For someone in Grand Prairie, Arlington, Dallas, Fort Worth, Irving, Hurst, Euless, Bedford, Garland, Mesquite, Carrollton, Richardson, or anywhere else in Texas, it is sometimes difficult to understand the conditions that are written in a policy and how those conditions apply to a claim the insured person is making to the insurance company.

An insurance contract may impose conditions on the insured. For example, almost all policies are going to require that the insured give notice of the claim as soon as is practicable when a claim arises. The insured also has a duty to to co-operate with the insurance company in its investigation of the claim. Most policies require that the insured file a formal proof of loss, if the insurance company requests it. When the insured commits a material breach of the insurance contract, the insurance company is excused from its obligation under the insurance contract. In this regard, it then becomes important to understand what a “material” breach is.

In trying to understand what a “material” breach is, the case, Rueben and Anita Hernandez v. Gulf Group Lloyds, decided in 1994, by the Texas Supreme Court is a good case to look at for guidance.

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?

Uninsured / Underinsured Insurance Coverage

November 4, 2010 | Mark S. Humphreys

Grand Prairie, Dallas, Fort Worth, Arlington, Mansfield, Grapevine, Crowley, Weatherford, and all other places in Texas will find someone driving a rental car. So, what happens if the person driving the rental car causes a wreck with someone else and they do not have enough insurance to cover the damages they cause? That was the issue in the case discussed below.

On October 7, 2010, the United States Court of Appeals for the Fifth Circuit, issued an opinion in the case styled, Kenneth McQuinnie v. American Home Assurance Company.

Here are the underlying facts:

Uninsured Coverage And Exemplary Damages

October 5, 2010 | Mark S. Humphreys

If a drunk driver hits someone from Bedford, Hurst, Euless, Granbury, Colleyville, Kellar, Fort Worth, Arlington, Grand Prairie, Dallas, or anywhere else in Texas, and the drunk driver does not have insurance, does the uninsured portion of an auto policy pay for the harm the drunk driver has caused? The answer is yes, and no.

Yes, the policy pays for some of the damages incurred because of the drunk driver. No, it does not pay for all the damages incurred by the drunk driver. Specifically, uninsured motorist coverage does not pay for exemplary damages.

The main Texas case on this issue is, Lolitha J. Milligan v. State Farm Mutual Automobile Insurance Company. This is a 1997, Houston Court of Appeals, 14th District, case.

When Does “Use” Equal Coverage On An Auto Policy?

September 26, 2010 | Mark S. Humphreys

A guy in Grand Prairie gets his claim denied. Or maybe, it is someone in Arlington, Grapevine, Bedford, De Soto, Duncanville, Burleson, Crowley, or anywhere else in Texas. How do you know if your insurance policy covers a claim. The lawerly answer is: It depends. But here are two things to do. First, read the policy. Second, consult with an experienced Insurance Law Attorney.

Here is a case that talks about coverage in the uninsured motorist context. The case is, Rick Collier v. Employers National Insurance Company. This is a 1993, case, decided by the Court of Appeals of Texas, Fourteenth District, Houston.

The court in this case, denied Collier’s claim that uninsured motorist coverage extended to the facts in this case. Here are the facts.

On-Line Insurance Policies

September 22, 2010 | Mark S. Humphreys

Everybody in Arlington, Grand Prairie, Mansfield, Burleson, De Soto, Dallas, Fort Worth, Benbrook, and other places in Texas have access to internet services. Using the internet, people have started purchasing all kinds of goods and services. One of the things purchased a lot on-line now days is insurance policies. When this happens some interesting questions can arise. How about this:

Let us say that you desire to purchase auto insurance on-line. One thing we have learned from earlier blogs at this site is that Insurance Law in Texas requires that on all insurance policies issued in the state of Texas that Personal Injury Protection (PIP) benefits be part of the policy. This is stated in the Texas Insurance Code, Section 1952.152(a). Section 1952.152(b) tells us that this coverage must be rejected in writing otherwise it is part of the policy.

Next, let’s say that when you purchase an auto policy on-line that you are prompted to check a box indicating a rejection of PIP coverage but because this is being purchased on-line there is no signature. Have you properly rejected PIP coverage? Or do you have the coverage?

Is Personal Injury Protection (PIP) Required?

September 1, 2010 | Mark S. Humphreys

Drivers in Arlington, Grand Prairie, Mansfield, Duncanville, De Soto, Flower Mound, Haslet, Benbrook, Saginaw, Newark, Crowley, Dallas, Fort Worth, and other places may ask the above question. Like most questions that are legal in nature, the answer is: It depends? Look at this case for guidance.

In 2003, the Austin Court of Appeals decided the case Taylor v. State Farm Lloyds, Inc. Here are the relevant facts in this case. Taylor purchased multi-peril insurance for her business from State Farm in 1993. At that time, multi-peril insurance policies were promulgated by the Texas Department of Insurance (TDI). Within that policy, State Farm offered limited non-owned auto liability insurance. Taylor purchased hired auto liability insurance as an endorsement to her multi-peril policy. In 1996, TDI allowed State Farm to write its own multi-peril auto policy subject to TDI’s approval. At that time, State Farm issued hired and non-owned auto liability coverage as an endorsement to Taylor’s multi-peril policy. None of the hired and non-owned auto liability coverage State Farm issued included PIP or UM/UIM coverage. Taylor contends that State Farm was required to issue PIP and UM/UIM coverage. State Farm rejoins that TDI has the authority to regulate certain auto insurance by other provisions of the insurance code when TDI determines that it is appropriate. State Farm further asserts that TDI has chosen to regulate hired and non-owned auto coverage under the multi-peril subchapter of the insurance code rather than the auto liability subchapter, and therefore, PIP and UM/UIM coverages are not mandatory with regard to the hired and non-owned auto liability insurance that forms a limited part of the multi-peril insurance Taylor purchased for her business.

The issue for the court was whether PIP and UM/UIM coverage is mandatory when an endorsement for hired and non-owned auto liability is added to a business’s multi-peril insurance policy.

Uninsured Drivers In Dallas And Fort Worth

July 27, 2010 | Mark S. Humphreys

It just makes you mad! Most drivers in Dallas, Fort Worth, Grand Prairie, Arlington, Mansfield, De Soto, Duncanville, Weatherford, Azle, Aledo, and throughout Texas do the right thing by maintaining liability coverage on their automobiles. But, way too many drivers are on the road without insurance.

The Dallas Morning News ran an article on Saturday, July 17, 2010, addressing this subject. The article is written by Terrence Stutz. The title of the article is, TexasSure program finds about 25 percent of vehicles uninsured in Dallas County.

This article points to a scary statistic. This stastistic is that 25 percent of all vehicles in Dallas County, according to records, 429,478 cars and trucks, remain without liability insurance. This statistic comes from the Texas Department of Insurance.