Dallas Fort Worth Insurance Lawyer Blog

Cancellation Of Policy And Bad Faith

January 8, 2013 | Mark S. Humphreys

Fort Worth attorneys need to be able to recognize bad faith insurance as it relates to cancellation of an insurance policy.

The Texas Insurance Code, Section 551.109, tells us that upon the request of the insured, the insurance company must provide a written statement of the reason for canceling a policy. The insurance company cannot just cancel your policy without telling you why. The statement they provide 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;

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:

Cancelled Insurance Policy

January 1, 2013 | Mark S. Humphreys

Fort Worth insurance lawyers need to know how to determine whether or not an insurance policy has been cancelled properly.

Insurance policies often contain provisions regarding cancellation.

An insurance policy may include a provision making cancellation effective upon the insurer’s mailing notice to the insured. The Houston Court of Appeals, 1st District, ruled in 1988, “The Policy or any Insuring Agreement may be cancelled by the Company by mailing to the Insured at the address shown in this Policy written notice stating when not less than fifteen days thereafter such cancellation shall be effective. The mailing of notice shall be sufficient proof of notice.”

Insurance Agent Negligence

December 30, 2012 | Mark S. Humphreys

Grand Prairie insurance attorneys need to understand what constitutes negligence by an insurance agent. A 1987, San Antonio Court of Appeals case looks at this. The style of the case is, Rainey-Mapes v. Queen Charters, Inc.

Here are some facts:

This case involves appeals arising from the non-payment of an insurance claim. William Gordon, president of Queen Charters, Inc., individually and as co-principal with Queen Charters, Inc. contracted to purchase a sailboat from the Estate of Theodore Schmidt (Schmidt). The boat, valued at $150,000.00, was purchased for $100,000.00. Gordon and Queen Charters (Gordon/Queen Charters) paid $5,000.00 down payment on the boat, and executed a promissory note to Schmidt for the balance of $95,000.00. The sales agreement required the buyers to maintain insurance on the vessel, which protected Schmidt as the loss payee. Gordon contacted the Sanger & Altgelt Insurance Agency (Sanger) to procure the required insurance. Sanger, acting as an agent for Gordon/Queen Charters, contacted Rainey-Mapes, an insurance broker, to obtain the insurance as Sanger does not normally handle maritime insurance. Rainey-Mapes contacted Southern Maritime Underwriters Limited who in turn contacted the Colony Insurance Company. Colony ultimately issued the insurance policy to Gordon/Queen Charters.

Insurance Agent Liability

December 29, 2012 | Mark S. Humphreys

Grand Prairie insurance attorneys need to be able to recognize when and if an insurance agent does something wrong.

A 1992, Amarillo Court of Appeals case provides some good discussion on this issue. The style of the case is, Pickens v. Texas Farm Bureau Insurance Companies.

Here is some of the relevant information.

Negligence Of Insurance Agents

December 27, 2012 | Mark S. Humphreys

Fort Worth insurance lawyers need to know the law as it regards the negligence of insurance agents.

The Texas Supreme Court issued an opinion in 1985, dealing with this issue. The case is styled, Kitching v. Zamora.

Here is some relevant case information:

Governmental Regulation Impact On Lawsuits

December 25, 2012 | Mark S. Humphreys

Dallas insurance attorneys need to understand the impact of government regulation on insurance litigation.

The extensive regulation of insurance has a direct impact on private litigation. Numerous examples can be cited.

1) Numerous states dictate the type of coverage that must be provided, and the forms that must be used. In Texas, see the Texas Insurance Code (TIC) in the following areas,

Business Of Insurance

December 23, 2012 | Mark S. Humphreys

Dallas insurance attorneys and others need to know and understand the business of insurance.

The Supreme Court of Texas has stated that the insurance business affects the public interest and thus is extensive regulation to prevent abuses.

This regulation is current enforced by the Texas Department of Insurance.