Dallas Fort Worth Insurance Lawyer Blog

Suing For Underinsured Motorist Coverage

November 15, 2012 | Mark S. Humphreys

Fort Worth insurance law attorneys need to know how underinsured motorist claims are handled by the courts.

The Austin Court of Appeals issued an opinion in September, 2012, that deals with this issue. The style of the case is In re American National County Mutual Insurance Company. Here is some relevant information from the case.

The lawsuit underlying this case arises from an automobile accident that occurred in 2009, between Cole and another driver, Estelline Bullock. Cole sued Bullock and eventually settled her claims for the limits of Bullock’s insurance policy, $100,000. Cole then made a claim under the uninsured/underinsured provision (“UIM”) of her own policy with American National. After rejecting American National’s offer to settle her UIM claim for $5,000, Cole sued American National for breach of contract, alleging that American National failed to pay her covered UIM claim. Cole also brought extra-contractual claims for common-law bad faith and insurance code violations. American National filed a traditional motion for summary judgment and in the alternative, a motion for severance and abatement. Specifically, American National requested that the trial court sever Cole’s extra-contractual claims, place those claims into a separate cause, and abate that cause pending final resolution of Cole’s claim for breach of contract. The trial court denied the motions and this mandamus proceeding followed.

Auto Damage And Claiming Against Your Own Insurance

November 13, 2012 | Mark S. Humphreys

Grand Prairie insurance attorneys need to know how courts are handling the cases related to first party insurance claims.

The San Antonio Court of Appeals issued an opinion in September, 2012, wherein the insured person did not hire an attorney. Instead he handled the case himself. The results are predictable.

The style of the case is, Clark v. Bristol West Insurance Services of Texas, Inc. Here is some of the case information:

Good Faith And Fair Dealing

November 11, 2012 | Mark S. Humphreys

Weatherford lawyers handling insurance claims need to have an understanding of about “good faith and fair dealing” as it relates to an insurance company’s duty it owes one of its insureds.

This is an area of law that a lot of attorneys do not know a lot about. Insurance law cases are not as well known as cases related to criminal law, family law, personal injury, bankruptcy, probate and business matters. There are a lot of statutes related to insurance, most of which are found in the Texas Insurance Code. But there is relevant law related to Insurance Law that is also found in the Texas Criminal Code, and the Texas Code of Criminal Procedure, the Texas Transportation Code, and the Texas Labor Code, to name a few.

The State Bar of Texas, Insurance Law Section, recently published information related to the duty an insurance company owes to one of its insureds. This article dealt with the duty of “good faith and fair dealing” that is owed by the company to its customers.

DELAYS IN PAYING CLAIM

November 10, 2012 | Mark S. Humphreys

Fort Worth insurance lawyers and those in Lake Worth, Saginaw, North Richland Hills, and other parts of Tarrant County need to know the rules governing how an insurance company is suppose to pay a claim.

The Insurance Law Section of the State Bar of Texas published an article that is informative on this subject. It tells us how to calculate the 18 percent statutory damages available under the Prompt Payment of Claims Statute.

The 18 percent penalty is found in the Texas Insurance Code, Section 541.060. The sections 542.051 through 542.061, establish the procedures for determining when first party claims are to be paid. Timetables are set out. These timetables will vary with the facts of the case. The remedies available against insurance companies for violations of the statute provide as follows:

Agent Responsibility For Informing Of Policy Expiration

November 8, 2012 | Mark S. Humphreys

Fort Worth Insurance Law attorneys need to know the responsibilities of agents in order to know when an agent has violated duties it owes to its insureds.

A 1992, opinion issued by the Amarillo Court of Appeals is noteworthy for the guidance its gives on this matter. The style of the case is, Horn v. Hedgecoke Insurance Agency. Here is some of the relevant information.

This appeal presents the novel question whether an insurance agency, through which an insurance policy was issued naming a mortgagee to whom a loss was payable and who paid the premium, has a duty of reasonably informing the mortgagee of the expiration and non-renewal of the policy by the named insured.

Agent Did Not Inform Insured Of Policy ExpIration

November 6, 2012 | Mark S. Humphreys

Parker County Attorneys who handle insurance cases need to know case law that will help clients. So, what does case law tell an attorney about agent responsibilities about keeping customers informed as to when a policy is fixing to expire?

In 1985, the Texas Supreme Court issued an opinion in the case styled, Woodie Kitching et ux. v. Pete O. Zamora. Here is what this case tells us.

This is an appeal that arises from a negligence lawsuit brought by Woodie and Sandra Kitching against their flood insurance agent, Pete O. Zamora. At issue is whether an insurance agent can be held liable for failing to keep a customer informed about the expiration date of the customer’s insurance policy. The trial court rendered judgment for the Kitchings. This Court upheld that judgment.

Something On Flood Insurance Law

November 4, 2012 | Mark S. Humphreys

Weatherford attorneys who handle insurance claims need to be aware of laws related to flood insurance. Here are a couple of cases that are good to know.

The first case is styled, Wright v. Allstate Insurance Company. It is a Federal Court opinion that was issued in 2007, by the 5th Circuit.

The insured homeowner sued Write Your Own insurer for fraud and negligent misrepresentation arising out of Tropical Storm Allison flood damage. Allstate had rejected Wright’s claim because of failure to cooperate and failure to file an adequate proof of loss. The district court found that Wright had failed to prove all of his damages were caused by flooding. In a prior appeal, the 5th Circuit had ruled that state law claims were pre-empted. Wright sought to amend the complaint to assert federal common law extra-contractual claims for fraud and misrepresentation.

Builder’s Risk Insurance

November 3, 2012 | Mark S. Humphreys

Grand Prairie insurance lawyers and those in other parts of Texas are going to run across various types of commercial insurance policies. One of those is known as “Builder’s Risk” policy. Here is a case dealing with a “Builder’s Risk” policy.

The case is styled, North American Shipbuilding v. Southern Marine and Aviation Underwriting. This is a 1996, opinion issued by the Houston Court of Appeals, 1st Dist.

The case involves the insuring of the hull of a ship during construction. North American purchased the builder’s risk policy through the insurance brokerage firm of Adams & Porter. Adams & Porter purchased the policy through a wholesale broker, Southern Marine, from the Underwriters. The policy insured against “all risks of physical loss of or damage to the vessel occurring during the currency of this policy except: … in the event that faulty design of any part or parts should cause physical loss or damage to the vessel.”

Jewelry Policy

November 1, 2012 | Mark S. Humphreys

Grand Prairie insurance lawyers and those in Fort Worth, Dallas, Duncanville, Mesquite, Garland, Richardson, and other places in the Dallas and Fort Worth area will run across various types of insurance policies. The most common are automobile policies and homeowners insurance policies. But there are also life insurance policies, disability policies and credit policies. Those are all normal. But there are also types of policies you do not see very often. One type that is rarely seen is insurance that covers specialty items such as jewelry.

The San Antonio Court of Appeals had a case in 1996, that dealt with the theft of jewelry. The style of the case is, “Tivoli Corp. v. Jewelers Mutual Insurance Co.” Here is a brief discussion of the opinion.

Kessler, a jewelry salesman, was traveling between sales locations when he stopped at a check cashing business owned by a friend. Kessler parked his car in the parking lot and left $78,000.00 worth of jewelry in his trunk. He went inside, used the restroom and stood by a window with his friend in a secured area. Kessler then saw thieves taking the jewelry from his car’s trunk. He ran from the secured area through the lobby and attempted unsuccessfully to stop the thieves. The insured notified the agent of the theft and filed a proof of loss for the jewelry. Jewelers Mutual denied the claim stating that the jewelry was not in Kessler’s possession and that the unattended vehicle exclusion provision applied. This exclusion excluded coverage of jewelry in transit unless the property was at all times in the possession of the person transporting it or in a vehicle that was attended.

Insurance Premiums

October 30, 2012 | Mark S. Humphreys

Arlington insurance lawyers and those in other places in Tarrant County need to keep themselves informed as to all issues related to insurance. Here is an article that deals with auto insurers and the way they charge premiums. The article was published in the New York Times in September of 2012. The interesting aspect of the article is how insurance companies use factors unrelated to driving to set rates.

Automobile insurers may use factors unrelated to driving, like education and occupation, in determining rates.

Now, a consumer group is urging state insurance commissioners to restrict insurers’ ability to use those factors, arguing that the result has been unfairly high rates for lower-income drivers. Stephen Brobeck, executive director of the Consumer Federation of America, said in a call this week with reporters that premiums should mainly reflect factors like accidents, speeding tickets and miles driven.