Dallas Fort Worth Insurance Lawyer Blog
Here is a 2025 opinion from the Southern District of Texas, Houston Division, with an interesting twist. The opinion is styled, Kimberly Russell v. State Farm Life Insurance Company.
The lawsuit alleges that State Farm took too long to investigate a claim for life insurance benefits. The unusual aspect of this case is that the insured’s filed a motion for summary judgment because of the alleged delays in processing the claim. It is usually the life insurer filing this type of motion.
On January 7, 2022, Davion D’Angelo Smith obtained a life insurance policy from State Farm. Following his passing on May 26, 2022, his mother and named beneficiary, Kimberly Russell, promptly filed a claim. In this suit, she alleges that State Farm engaged in prolonged delays and excessive documentation requests, beginning with a basic request on August 16, 2022. She also claims that despite her prompt compliance, State Farm repeatedly asked for additional or revised documents without clear justification. Over the next year, the company allegedly sent multiple “still processing” notices without providing substantive updates or raising specific concerns about coverage.
On April 12, 2023, nearly a year after Smith’s passing, State Farm requested records from the Texas Department of Pardons and Paroles and the Texas Department of Criminal Justice. Kimberly argues that she continued to cooperate, but the claim remained unpaid without a legitimate basis for denial. On June 3, 2024, Kimberly’s counsel sent a demand letter highlighting State Farm’s delays and requesting payment. The complaint alleges that State Farm has intentionally delayed payment by demanding unnecessary document requests, has failed to explain delays, and has been non-responsive.
Here, State Farm has clearly identified factual disputes. The application submitted by Kimberly Russell for Davion Smith’s life insurance policy explicitly asked whether he had been convicted of a felony or incarcerated in the past three years. Despite Smith’s recent release from incarceration, just 17 days before the application date, both Russell and Smith falsely answered “No.” State Farm contends that had it known of this incarceration, it would not have issued the policy. After Smith’s death, State Farm requested documents from Russell, including authorization forms and criminal records from Harris County. Russell did not provide the records, instead responding that she did not possess them and instructed State Farm to retrieve them on its own.
Under Texas Insurance Code, section 705.051, a material misrepresentation in an insurance
application can serve as a basis for denial of coverage if it affects the risk assumed by the insurer.
Texas courts have held that misrepresentation about an applicant’s criminal history and
incarceration status are material when they impact underwriting decisions.