An inconsistent investigation and the insurance company relying on it is bad faith according to the 1988, Dallas Court of Appeals opinion, Harco Nat’l Ins. Co. v. Villanueva. The owner of a truck reported the theft of the truck to his insurance company, Harco. Harco’s investigator stated that he saw…
An insurance company may breach its duty of good faith and fair dealing by failing to reasonably investigate a claim. As an example, in the 1997, Texas Supreme Court opinion, Universe Life Ins. Co. v. Giles, the insurer could not escape liability merely by failing to investigate the claim so…
The Law Office of Mark Humphreys announces the settlement of another case dealing with a “Credit Life & Disability” insurance policy. This case involved a client who’s husband had purchased the policy as part of the deal when buying an expensive new truck. The client’s husband had numerous health issues…
As was stated in the 1997, Texas Supreme Court opinion, Universe Life Ins. Co. v. Giles, an insurer violates its duty of good faith and fair dealing by denying or delaying payment of a claim if the insurer knew or should have known that its liability was reasonably clear. However,…
The standard of bad faith was originally phrased in the negative under the 1988, Texas Supreme Court case, Aranda v. Insurance Co. of N. Am. Under that case, the first element of bad faith required an objective determination of whether a reasonable insurer under similar circumstances would have denied plaintiff’s …
The Insurance Code sections and the Deceptive Trade Practices Act were adopted together in 1973, as part of a package to reform legislation, are interrelated, and incorporate each other. Texas Insurance Code, Section 541.008 says the Insurance Code provisions are to be liberally construed and applied to promote its underlying…
Insurance attorneys know that Section 541.051 broadly prohibits making any statement misrepresenting the terms of a policy, or the benefits, advantages, or dividends of a policy, making misrepresentations about the financial condition of an insurer, misrepresenting the true nature of any policy or class of policies, or making any misrepresentation…
Here is a list of responsibilities that insurance agents can be held responsible for failing to perform or performing incorrectly. A. From a 1948, El Paso Court of Appeals opinion styled, Burroughs v. Bunch, an insurance agent has a duty to procure the coverage entrusted to his care, or failing…
In order to hold a person liable for his/her acts or omissions, the thing complained of must violate a duty which the law recognizes. This is easily understandable in the case of a collision resulting from running a stop sign. The law imposes a duty of drivers to stop at…
Texas insurance lawyers will find this interesting. A person finds early on when dealing with an insurance company that simply making complaints and contacting the Texas Department of Insurance is a waste of time and effort. If you are an attorney representing someone injured in an automobile accident and the…