Dallas Fort Worth Insurance Lawyer BlogInsurance attorneys in Dallas can tell you where the relevant laws to be used in insurance bad faith cases can be found. One place is the Texas Insurance Code.
Here is a starter.
Sec. 541.002. DEFINITIONS. In this chapter:
(1) “Knowingly” means actual awareness of the falsity, unfairness, or deceptiveness of the act or practice on which a claim for damages under Subchapter D is based. Actual awareness may be inferred if objective manifestations indicate that a person acted with actual awareness.
(2) “Person” means an individual, corporation, association, partnership, reciprocal or interinsurance exchange, Lloyd’s plan, fraternal benefit society, or other legal entity engaged in the business of insurance, including an agent, broker, adjuster, or life and health insurance counselor.
Sec. 541.051. MISREPRESENTATION REGARDING POLICY OR INSURER. It is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to:
(1) make, issue, or circulate or cause to be made, issued, or circulated an estimate, illustration, circular, or statement misrepresenting with respect to a policy issued or to be issued:
(A) the terms of the policy;
(B) the benefits or advantages promised by the policy; or (C) the dividends or share of surplus to be received on the policy;
(2) make a false or misleading statement regarding the dividends or share of surplus previously paid on a similar policy;
(3) make a misleading representation or misrepresentation regarding:
(A) the financial condition of an insurer; or (B) the legal reserve system on which a life insurer operates;
(4) use a name or title of a policy or class of policies that misrepresents the true nature of the policy or class of policies; or (5) make a misrepresentation to a policyholder insured by any insurer for the purpose of inducing or that tends to induce the policyholder to allow an existing policy to lapse or to forfeit or surrender the policy.
Sec. 541.052. FALSE INFORMATION AND ADVERTISING. (a) It is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to make, publish, disseminate, circulate, or place before the public or directly or indirectly cause to be made, published, disseminated, circulated, or placed before the public an advertisement, announcement, or statement containing an untrue, deceptive, or misleading assertion, representation, or statement regarding the business of insurance or a person in the conduct of the person’s insurance business.
(b) This section applies to an advertisement, announcement, or statement made, published, disseminated, circulated, or placed before the public:
(1) in a newspaper, magazine, or other publication;
(2) in a notice, circular, pamphlet, letter, or poster;
(3) over a radio or television station;
(4) through the Internet; or (5) in any other manner.
Sec. 541.053. DEFAMATION OF INSURER. (a) It is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to directly or indirectly make, publish, disseminate, or circulate or to aid, abet, or encourage the making, publication, dissemination, or circulation of a statement that:
(1) is false, maliciously critical of, or derogatory to the financial condition of an insurer; and (2) is calculated to injure a person engaged in the business of insurance.
(b) This section applies to any oral or written statement, including a statement in any pamphlet, circular, article, or literature.
The above statutes are a starter to some of the laws. Read the next blog to get into some statutes that are used in an everyday law practice by insurance lawyers.
Bad Faith Insurance Law In Texas
