Insurance lawyers want to pursue the best theories of recovery when a client has a claim wrongfully denied. Some people just want to file a complaint with the Texas Department of Insurance. But, there are better ways to improve the situation.
Recovery based on theories of misrepresentation were discussed in the last posting.
Another way of recovery is based on “non-disclosures.” Closely related to misrepresentation is the theory that the insurance company, agent, or insured failed to disclose information. For example, if an exclusion is not adequately disclosed, the insurance company may be liable for breach of contract by relying on the exclusion to deny a claim. Failing to adequately disclose limitations or exception to coverage may also make the insurance company or agent liable for unfair insurance practices or deceptive trade practices.