Dallas Fort Worth Insurance Lawyer Blog

Agent Liability

October 4, 2011 | Mark S. Humphreys

The liability of an insurance agent for his actions in selling an insurance policy to someone in Grand Prairie, Arlington, Mansfield, Fort Worth, Hurst, Euless, Bedford, or anywhere else in Texas should be of interest to the person buying the insurance. Especially so if the agent does something wrong and as a result the insurance company denies a claim made by the customer.

That is what happened in the 1989, case, “Paramount National Life Insurance Company v. Frankie Williams.” This opinion was issued by the Houston, 14th District, Court of Appeals. Here are some of the facts.

Frankie Williams sued Paramount after the denial of two claims and the cancellation of her medical insurance policy. The jury found in her favor and Paramount appealed the decision.

Authority Of Insurance Agent For Insurance Company

October 2, 2011 | Mark S. Humphreys

Residents in Weatherford, Mineral Wells, Millsap, Hudson Oaks, Aledo, Willow Park, Brock, Cool, Springtown, and other places in Parker County might wonder if what their insurance agent tells them is true. Or, if what the agent says is not true?

Most insurance agents are honest. However, there are a few that are not completely honest because they want to sell you a policy in order to make their commission on the sell. Others are confused or do not completely understand the insurance product they are selling. The question becomes; what can be done when the agent makes a mistake in what he tells someone when he sells the policy?

The answer often times depends on the authority of the agent.

Homeowners Coverage Getting Less And Less

October 1, 2011 | Mark S. Humphreys

For sure, anybody in Grand Prairie, Arlington, Fort Worth, Hurst, Euless, Bedford, or anywhere else in North Texas wants to get rates as cheaply as they can on their homeowners insurance policy, but they would like to thing their coverage is staying the same. Well that may not be the case.

The Houston Chronicle published a story On September 12, 2011, which most homeowners would be interested to know. The author is Purva Patel, who has written on the topic of insurance before. The title of the article is, “State Farm Move Could Mean Less Homeowner Coverage.”

The article tells us that State Farm has proposed changing home insurance deductibles. Most anybody who has tried to get their rates lowered knows that buy raising the deductible, the yearly cost for the insurance goes down. What is different here is that State Farm is trying to make the new coverage mandatory. Consumer advocates warn this would hurt some.

Agent Misrepresents Policy

September 29, 2011 | Mark S. Humphreys

Insurance agents in Weatherford, Mineral Wells, Aledo, Willow Park, Hudson Oaks, Azle, Millsap, Brock, Cool, Springtown, or anywhere else in Parker County will make mistakes. The question becomes: What can be done about it?

A 1979, Texas Supreme Court case is still good law for that question. The style of the case is, “Royal Globe Insurance Company v. Bar Consultants, Inc.”

The principle question in this case was whether or not a misrepresentation about coverage afforded by a policy of insurance, made by the insurance company’s local recording agent, was a deceptive trade practice under Texas statutes for which the insurance company as principle is liable. This court said yes. Further, the Texas Insurance Code now makes the company liable for the acts of the agent.

Insurance Agent Responsibility In Texas

September 27, 2011 | Mark S. Humphreys

An insurance agent in Weatherford, Mineral Wells, Aledo, Hudson Oaks, Willow Park, Pool, Millsap, Brock, Azle, Peaster, and other places Parker County and Texas can be liable for failing to provide you with the insurance you have requested, plus the insurance company can be liable for the agent.

The Texas Supreme Court issued an opinion in 1994, in the case, Celtic Life Insurance Company v. John D. Coats. This case serves as an example how an insurance company can be found liable for the actions of the agent when the agent commits something wrong in selling an insurance policy. Here is some legal and factual background.

The case presented two relevant issues relating to an insurance company’s liability for its agent’s representations. First, whether the company’s liability depends on its authorization of misrepresentations; second, whether reliance on the representations is an element of recovery.

Deductibles

September 25, 2011 | Mark S. Humphreys

For someone in Grand Prairie, Arlington, Fort Worth, Hurst, Euless, Bedford, Grapevine, Colleyville, Keller, Roanoke, Saginaw, or anywhere else in Tarrant County or Texas, knowing and understanding the deductibles in an insurance policy is important.

The Washington Post ran an article on September 8, 2011, titled “Irene Storm Damage Led Insurers To Apply Prohibited Deductible Charges.”

The article, written by Joe Stephens, tells about some insurers incorrectly applying deductibles to claims resulting from Irene damages in Maryland. The person in the story, Judi Nowottnick, a school teacher, lost electrical power for eight days She had two refrigerators containing four dozen crabs and $1,000 of other food which spoiled. On top of that, she spent an additional $400 on fast food while the electricity was out.

Insurance Agent Responsibility

September 24, 2011 | Mark S. Humphreys

An insurance agent in Grand Prairie, Arlington, Hurst, Euless, Bedford, Fort Worth, Dalworthington Gardens, Mansfield, Crowley, or anywhere else in Tarrant County or Texas is capable of making a mistake. But what if the mistake results in one of his customers not having the coverage they need when a claim occurs?

This situation came up in the Fourteenth Court of Appeals case styled, West Houston Airport, Inc. v. Millennium Insurance Agency, Inc. The opinion in this case was issued on in 2010 and the opinion was essentially upheld by the Texas Supreme Court in August 2011.

The facts in this case are not in dispute. However, they are pretty involved and are hard to follow. Rather than spending several pages trying to make the facts understandable, what needs to be learned or realized from the case is the duty an insurance agent owes to one of his customers when it comes to procuring insurance for that customer.

Lender-Placed Policies

September 22, 2011 | Mark S. Humphreys

On occasion someone in Grand Prairie, Arlington, Fort Worth, Dallas, Mansfield, De Soto, Duncanville, Cedar Hill, Irving, or some where else in North Texas will find themselves in a situation where they have lender-placed insurance on their property. This is also sometimes called forced-placed insurance.

These types of insurance usually are the result of a borrower, who has a contractual obligation to keep certain property insured, fails to do so. When this happens the lender purchases insurance and applies the cost of the insurance to the loan. The big problem for these types of insurance is that the insurance is for the benefit of the lender, not the borrower.

The United States District Court, Southern District of Texas, Houston Division issued an opinion on August 16, 2011, in a case dealing with lender-placed insurance. The Judge was Judge Kenneth M. Hoyt. The style of the case is, Horacio Barrios, et al. v. Great American Assurance Company, et al.

Disability Insurance Policies

September 20, 2011 | Mark S. Humphreys

A lot of people in Grand Prairie, Arlington, Mansfield, Irving, Fort Worth, Dallas, Hurst, Euless, Bedford, and other places in Texas will have a disability policy. What they need to understand is the conditions under which the policy pays benefits.

The Texas, 14th Court of Appeals, issued an opinion recently styled, “Chester Humphrey v. AIG Life Insurance Company, in which a disability policy was at issue. Here is some background.

Chester Humphrey, sought total disability benefits from his employer’s insurance company, AIG, following an on-the-job injury. Because AIG denied Humphrey’s claim, he sued.

Bad Faith Insurance Claims

September 18, 2011 | Mark S. Humphreys

An insured in Grand Prairie, Arlington, Fort Worth, Dallas, or anywhere else in North Texas might wonder how an under-insured motorist claim works. That is a long answer, but here is how some of it worked in this situation.

The Dallas Court of Appeals issued an opinion on August 12, 2011, in the case styled In Re State Auto Property & Casualty Insurance Company and Hotchkiss Family Holdings, Inc D/B/A Hotchkiss Insurance Agency. This is a mandamus proceeding complaining of two orders of the trial court. Here is some background information.

Graeber and Kori Anderson were involved in an auto accident in which liability was disputed. After Graeber settled his lawsuit against Kori Anderson within Anderson’s policy limits, he sued State Auto, two of its adjusters, and his local insurance agent, Hotchkiss, seeking underinsured (UIM) benefits and extra-contractual damages for bad faith and other claims. State Auto asked the court to sever and abate the UIM claims from the extra-contractual claims. This was denied, but separate trials with separate juries was ordered, as well as a stay of discovery and proceedings on the extra-contractual claims until the disposition of the UIM claim.