Dallas Fort Worth Insurance Lawyer Blog

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.

Who Is The Named Insured

September 17, 2011 | Mark S. Humphreys

People who buy insurance in Grand Prairie, Arlington, Fort Worth, Mansfield, Hurst, Euless, Bedford, Grapevine, Mesquite, Richardson, and other places in the DFW metroplex area need to make sure the named insured on an insurance policy is the person or business who needs to be covered by the policy.

A 1991, case decided by the Houston 14th, Court of Appeals, serves as an example of making sure the correct person or entity is named on the insurance policy. The style of the case is, St. Paul Lloyd’s Insurance Company v. Fong Chun Huang, Individually and as Trustee for Teppan Yaki Management. Here is some background information to know on the case.

St Paul’s denied coverage under its insurance policy claiming Fong Chun Huang was responsible for the burning of the Happy Buddha Restaurant. Fong sued St. Paul’s for failure to pay on the policy and for breach of the duty of good faith and fair dealing. The trial court awarded damages to Fong for the cash value under the insurance policy. The trial court further reformed the insurance policy to change the named insured from Fong Chun Huang, individually, to Teppan Yaki Management, Inc., which was the apparent true owner of the restaurant.

Timely Payment Of Claims

September 15, 2011 | Mark S. Humphreys

An insured in Weatherford, Mineral Wells, Aledo, Hudson Oaks, Willow Park, Peaster, Azle, Springtown, Millsap, Brock, Cool, Poolville, or anywhere else in Parker County would expect any claim they make to be paid in a timely manner. So what happens if it is not paid in time?

A 1995, Amarillo Court of Appeals case styled, Doris Rusk, Roger Lusk, and Russell D. Daves v. Honorable Cecil G. Puryear, addressed this issue.

Keep in mind that first, an experienced Insurance Law Attorney should be consulted to help in these situations. Next, here is what happened in this case.

Delay In Paying Claim

September 13, 2011 | Mark S. Humphreys

A resident in Grand Prairie, Weatherford, Arlington, Fort Worth, Dallas, Mineral Wells, Mansfield, Crowley, Benbrook, Aledo, or anywhere else in Texas may wonder how long an insurance company has to pay a claim after the claim is made. The answer is not always easy. Worse though, is how to bring a lawsuit to enforce this statutory right against a company who violates the law.

The Prompt Payment of Claims Act is in the Texas Insurance Code, Sections 542.051 thru 542.061. These sections set out in pretty good detail how long an insurance company has to pay a claim. The length of time varies with the circumstances and facts of each claim and the needs of any investigation. Plus the type of insurance company makes a difference in how long the company has to pay the claim.

But stepping beyond how long a company has to pay a claim is, how does someone enforce their rights to timely payment. An experienced Insurance Law Attorney needs to be consulted to get a good answer.