Dallas Fort Worth Insurance Lawyer Blog

Life Insurance – Effective / Commencement Date Of Coverage

October 31, 2010 | Mark S. Humphreys

An insured in Grand Prairie, Dallas, Fort Worth, Coppell, Richardson, Duncanville, Aledo, Arlington, or anywhere else in Texas may ask this question: When does the life insurance policy become effective? Here is some guidance.

Most life insurance policies expressly state the “effective date” of coverage. This date may be earlier than, or later than, the date the first premium is paid or the dates the policy is issued or delivered. Often, an insurance policy may have an effective date, an issue date, and a policy date — and they may all be different, causing confusion or misunderstanding. If the dates differ, disputes may arise over when the policy actually took effect or terminated. The effective date can be important in setting the due date for subsequent premiums and thus the date of any lapse for failure to pay a premium.

An example to think about is found in the case, Life Insurance Company of the Southwest v. Overstreet. This is a Texas Supreme Court case decided in 1980. Here is a brief summary of the case:

Life Insurance – Prohibited Clauses

October 28, 2010 | Mark S. Humphreys

What are clauses that are illegal / prohibited? Someone from Grand Prairie, Arlington, Mansfield, Burleson, Crowley, Lake Worth, or other places in Texas may ask that question. Here are a few examples of clauses / provisions that are illegal in Texas when they are included in a life insurance policy.

The following provisions cannot be included in life insurance policies:

1. Per Texas Insurance Code, Section 1101.053, a policy cannot limit the time to sue to less than two years. Section 1101.053 reads: “A life insurance policy may not include a provision that limits the time during which an action under the policy may be commenced to a period of less than two years after the date the cause of action accrues.”

Life Insurance Policy – Required Provisions

October 25, 2010 | Mark S. Humphreys

No matter if you live in Dallas, Fort Worth, Mesquite, Garland, Duncanville, De Soto, Hurst, Bedford, Aledo, or anywhere else in Texas, any insurance policy you purchase must have certain provisions in it. The following are some of those provisions.

The Texas Insurance Code, Sections 1701.002 thru 1701.151, says life insurance issued in the State of Texas must be approved by the Texas Department of Insurance. Policies must contain these provisions:

1) Benefits shall be payable in currency. See Texas Insurance Code, Section 1102.002. The Texas Department of Insurance can withdraw approval of policies that offer payment in foreign currency that is less stable than United States curerency.

Life Insurance – Areas Of Dispute

October 22, 2010 | Mark S. Humphreys

People in Grand Prairie, Arlington, Dallas, Fort Worth, Weatherford, Irving, Carrollton, and other places in Texas usually find out the hard way about areas of dispute in their insurance policies. Below is some information to be aware of.

Life insurance coverage is fairly straightforward. If the insured person dies during the policy term, the insurance company pays the benefits. The following are some ways that disputes may arise:

1) An agent may misrepresent the benefits of his insurance company’s policy to induce the insured to switch from another company. See Texas Insurance Code, Section 541.061.

Types Of Life Insurance In Texas

October 19, 2010 | Mark S. Humphreys

What types of insurance are available to people in Grand Prairie, Arlington, Mansfield, Cleburne, Weatherford, Granbury, or other places in Texas? The answer is the same where ever a person may live in Texas.

Common life insurance types are term, whole life, and universal life.

“Term” policies simply provide a death benefit in return for a premium payment. At the end of the policy year, or “term,” the insurance ends, and the policy has no value. Term policies do not accrue cash value. Because the insured is only paying for the death benefit, term policies are cheaper in the early years. As the insured gets older, the risk of death increases and so does the premium, so term may become more expensive than the other types. Insurance companies typically sell term policies that promise a fixed premium for a set number of years. For example, an insurer may sell a 10 year term policy that the insured may purchase and renew for the same annual premium during those years, without having to re-qualify.

Insurance Application

October 16, 2010 | Mark S. Humphreys

A person living in Grand Prairie, Dallas, Fort Worth, Arlington, Mansfield, Burleson, or anywhere else in Texas may wonder when an insurance policy actually goes into force.

From a legal standpoint, an application is a request for a contract of insurance that, as a mere proposal, can become a contract only by the insurance company’s acceptance. This was stated in the 1980 case, Durham Life Insurance Company v. Cole, in an opnion written by the Texas Court of Appeals in Eastland. Another case said, “There is no contract unless and until the application for insurance is accepted by the insurance company.” This was stated by the Houston Court of Appeals (1st) District, in 1996.

Here is an example from the Texas Court of Appeals, Amarillo, in 1960. The case is American Bankers Insurance Company v. Carpenter. Here, Carpenter applied for insurance on his boat while it was rented. The policy that was issued did not cover the boat while rented. Carpenter rejected the contract. The boat was damaged. There was no insurance coverage, because the contract was never accepted.

Insurance Policy Interpretation Of “Theft”

October 12, 2010 | Mark S. Humphreys

Policy holders in Grand Prairie, Mansfield, Arlington, Crowley, Grapevine, Hurst, Dallas, Fort Worth, and all across the state of Texas will be amazed at the different ways they can have claims denied based on the langauge in the policy. For instance, what does the term “theft” mean in an insurance policy?

The Fifth Circuit Court of Appeals in Dallas, decided a case on July 2, 2010, where the main issue was the meaning/definition of the word “theft”. The style of the case is, Nautilus Insurance Company v. Francis Steinberg and Morton Rudberg. This case originated in the 95th Judicial District Court, Dallas County, Texas. The opinion in this case was issued by Justice Morris.

Central to this case is the meaning of the word “theft” as used in an insurance policy that excludes “damage caused by or resulting from theft.”

Property Insurance

October 9, 2010 | Mark S. Humphreys

Property insurance for residents of Grand Prairie, Arlington, Weatherford, Dallas, Cleburne, Mansfield, De Soto, Duncanville, Lancaster, and other residents in Texas is not something most would be familiar with or how it works. So what is it?

Property insurance involves the indemnification of the insured by the insurance company for the loss of, or damage to, indentifiable property described either specifically or by general language in the policy. This is discussed in the Dallas Court of Appeals case, Cumis Insurance Society v. Republic National Bank of Dallas, decided in 1972. Coverage evaluations in the context of property insurance examine the relationship between perils covered under the policy and perils excluded under the policy. This is discussed by the Corpus Christi Court of Appeals case, Warrilow v. Norrell, a 1989 decision.

Property insurance policies are intended solely to indemnify the insured for his or her actual monetary loss, and unless the insured has sustained an actual loss, the insurance company has no liability. This is stated in Highlands Insurance Company v. City of Galveston, by the Houston Court of Appeals, 14th District, decided in 1986.

Homeowners Liability Insurance

October 7, 2010 | Mark S. Humphreys

Homeowners in Cedar Hill, Grand Prairie, Dallas, Fort Worth, Saginaw, Arlington, Burleson, Crowley, Weatherford, Azle, Aledo, Lake Worth, and all over the state usually know very little about their homeowners insurance except that if their house burns down the insurance is suppose to pay for it. Something else most homeowners insurance does is protect the homeowner when they are sued for certain reasons.

Most insurance carriers such as State Farm, Allstate, Farmers, Geico, Progressive, and many others provide this coverage. Although there are many different types of insurance policies that can insure a home, condominium, apartment, or other dwelling, the Homeowners Policy–Form B (HOB) is the homeowners policy sold to the largest number of homeowners in Texas. As such, the liability provisions of the HOB are most relevant to most homeowners.

An insurance agent is a source for learning about these policies, as is the Texas Department of Insurance. If ever, you believe there is a problem, you should seek the advice of an experienced Insurance Law Attorney.

Uninsured Coverage And Exemplary Damages

October 5, 2010 | Mark S. Humphreys

If a drunk driver hits someone from Bedford, Hurst, Euless, Granbury, Colleyville, Kellar, Fort Worth, Arlington, Grand Prairie, Dallas, or anywhere else in Texas, and the drunk driver does not have insurance, does the uninsured portion of an auto policy pay for the harm the drunk driver has caused? The answer is yes, and no.

Yes, the policy pays for some of the damages incurred because of the drunk driver. No, it does not pay for all the damages incurred by the drunk driver. Specifically, uninsured motorist coverage does not pay for exemplary damages.

The main Texas case on this issue is, Lolitha J. Milligan v. State Farm Mutual Automobile Insurance Company. This is a 1997, Houston Court of Appeals, 14th District, case.