Dallas Fort Worth Insurance Lawyer Blog

Credit Life And Disability Policies In Texas

July 13, 2010 | Mark S. Humphreys

Most every person in Grand Prairie, Arlington, Mansfield, Fort Worth, Bedford, Mesquite, De Soto, Duncanville, Weatherford, or anywhere else in the State of Texas, has at one time or another purchased something on credit. Many times when a credit purchase is made a person will have the opportunity to purchase some sort of insurance that will pay the debt in the event that you become disabled or killed before the debt is repaid.

Almost all credit card companies will offer credit life and disability for a few extra dollars each month and charged a fee based on the total amount of the debt due on your credit card. The payment for this insurance is going to be charged and included in your credit card payment. Another place most people will see this type of insurance being offered is with a home purchase. If you do not purchase this option when you purchase the home, you will receive numerous solicitations in the mail offering this insurance to you. Another time a person is almost always requested to purchase this type of insurance is when an automobile purchase is made on credit. If this type of insurance is purchased in a car transaction it is going to be at the point of sale and is usually a lump sum and rolled into the loan for the vehicle.

Texas laws exist to regulate credit life and disability policies in Texas. The chapter of the law dealing with this is cited as the Act for the Regulation of Credit Life Insurance and Credit accident and Health Insurance.

Settling Claims And Liens And Subrogations In Texas

July 11, 2010 | Mark S. Humphreys

What is a lien? The person in Flower Mound, Haslet, Saginaw, Irving, Carrollton, De Soto, Grand Prairie, Arlington, Mansfield, Fort Worth, or anywhere else in Texas may ask that question.

Generally speaking, in the insurance context a lien is a right to money that a third person may eventually get. Others describe it as a property right which remains attached to an object tht has been sold, but not totally paid for, until complete payment has been made. Another way of putting it is, a hold or claim which one person has upon the property of another as a security for some debt or charge.

In the insurance world a lien normally arises where some person or business causes injury to someone. After the injury, the injured person seeks and receives medical care that his personal health insurance pays for. When this occurs the health insurance company will usually have a subrogation lien against the person or business that caused the injury.

What If Your Insurance Company Goes Out Of Business?

July 10, 2010 | Mark S. Humphreys

Here is a question a resident of Mansfield, Grand Prairie, Arlington, De Soto, Hurst, Benbrook, Burleson, Fort Worth, or any other city in Texas might ask. What happens if my insurance company goes bankrupt?

First of all, insurance companies that have financial problems do not go into or declare bankruptcy. Financially insolvent insurance companies go into receivorship. The Texas Insurance Code, Section 443.004, defines receivorship as any liquidation, rehabilitation, or ancillary conservation.

Companies that write insurance policies in Texas are heavily regulated, and the Texas Legislature has provided numerous safeguards to protect the residents listed above against insurance company insolvency. The Texas Property and Casualty Insurance Guaranty Act is found in the Texas Insurance Code, Chapter 462. Also see, Texas Transportation Code, Section 643.105. (This section 643.105, deals with commercial carriers on the highway such as the companies that insure 18-wheelers) In connection with these statutory safeguards, Article 5.06-1 of the Texas Insurance Code requires the definition of “uninsured motorist” to include a vehicle for which the liability carrier is or becomes insolvent. Furthermore, the Texas Property and Casualty Insurance Act provides further protection for the public against failure of licensed insurance companies as a result of insolvency.

Insurance Companies Taking Advantage Of People

July 8, 2010 | Mark S. Humphreys

No matter where you live, Grand Prairie, Arlington, Mansfield, Weatherford, Haslet, Keller, North Richland Hills, Newark, Fort Worth, or any other place in Texas, you hate the thought that your insurance company may be taking advantage of you.

This blog is primarily devoted to claims denial issues and lawsuits that can be brought against insurance companies, agents, and adjusters. Sometimes the wrongs being committed against people by insurance companies are corrected by the Texas Department of Insurance. One example of this is in regulation of rates that the insurance companies are allowed to charge people.

The Austin American-Statesman recently ran an article on this issue. The title of the article is “Hartford agrees to insurance refunds, rate reduction.” This article was written by Tim Eaton on the American-Stateman staff. It was published on July 1, 2010.

Homeowners Claim Denial And Lawsuit In Texas

July 7, 2010 | Mark S. Humphreys

If someone in Hurst, Euless, Bedford, Fort Worth, Cedar Hill, Crowley, Burleson, Irving, Grand Prairie, Arlington, Mansfield, or anywhere else in Texas, has to file a lawsuit because their homeowners insurance company is denying their claim, one thing they want for sure is a successful outcome. The best outcome is usually going to occur in a State or County court, not in a Federal Court. As a result of this knowledge among insurance company attorneys, they will always try to get a case moved to Federal court if there is any way possible of doing so.

This was attempted in the case styled, James N. Wofford, et al v. Allstate Texas Lloyd’s and Randy Paul Johnson. The opinion in this case was signed on June 9, 2010, By Federal Judge, Kenneth M. Hoyt, a Judge in the United States District Court, S. D. Texas, Houston Division.

In this case, the homeowner, James Wofford, had a policy of insurance with Allstate Texas Lloyd’s. Wofford’s home was damaged by Hurricane Ike. Wofford filed a claim with Allstate and Allstate assigned adjuster Randy Paul Johnson, to handle the claim. Johnson was named as one of the defendants in the lawsuit. This case was filed in the 11th Judicial District Court of Harris County, Texas, and Allstate immediately filed papers to have the case removed to federal court.

Homeowners And Mold Claims In Texas

July 6, 2010 | Mark S. Humphreys

Most homeowners in Cedar Hill, Grand Prairie, Arlington, Mansfield, Benbrook, Burleson, Haslet, Saginaw, Fort Worth, or any other city in Texas is not going to have a mold problem with their home. But the ones who do will wonder: What now? Will my insurance cover the costs the mold problem is causing?

Unfortunately, there is no easy answer to these questions.

The quick answer is: It depends on what your homeowners insurance policy says.

Homeowners, Windstorms, & Insurance

July 5, 2010 | Mark S. Humphreys

Homeowners in Flower Mound, Haslet, Saginaw, Newark, Benbrook, Crowley, Cedar Hill, Hutchins, Grand Prairie, Arlington, Mansfield, Weatherford, or anywhere else in Texas will have insurance on their homes. Most, if not all are concerned about the cost of their insurance and the coverages provided by their policy if they suffer a loss.

Even though it is not often a problem for homeowners in the towns and cities listed above, homeowners along the gulf coast areas of Texas, will many times have problems getting coverage for wind damage to their homes. When they can get their standard insurance carrier such as State Farm, Allstate, Farmers, or one of the other standard companies to provide coverage, it is at an expensive cost. So what can they do to get coverage and get it at a cost they can afford?

The answer is to get coverage through the Texas Windstorm Insurance Association (TWIA). Homeowners along the gulf coast still have to pay premiums that exceed thousands of dollars for coverage through TWIA. In spite of these already expensive rates, the TWIA has asked the Insurance Commissioner, Mike Geeslin, to allow a rate increase of 5 percent starting next year.

Who Gets Personal Injury Protection (PIP) Monies?

July 3, 2010 | Mark S. Humphreys

An insurance policyholder in Southlake, Grapevine, Grand Prairie, Arlington, Fort Worth, Mansfield, Burleson, Crowley, or anywhere else in Texas may ask the same question; Who gets the personal injury protection (PIP) monies. It is estimated that only ten per cent of automobile policyholders purchase PIP benefits as an option when they purchase their auto insurance policy. It costs extra, and lots of people just do not want to pay the extra money for this benefit.

The Texas Insurance Code, Section 1952.152, mandates that PIP coverage be offered to any purchaser of auto liability coverage. Section 1952.153, mandates that the minimum amount of coverage for PIP is $2,500. Some insurance companies will offer up to $100,000 of PIP coverage.

Section 1952.155 mandates that this coverage be provided without regard to fault in the accident or any other event that the coverage provides for. The PIP benefits are payable without regard to fault or other sources of insurance coverage. This same section of the Insurance Code states that an insurance company paying benefits under PIP coverage does not have a right of subrogation or claim against any other person or insurance company to recover any benefits by reason of the alleged fault of the other person in causing or contributing to the accident.

Towing And Storage Charges And Auto Insurance In Texas

July 1, 2010 | Mark S. Humphreys

Someone living in Flower Mound, Haslet, Grand Prairie, Arlington, Mansfield, Crowley, Cedar Hill, Carrollton, Irving, or anywhere else in Texas may wonder what happens or who is suppose to pay the towing and storage charges resulting from an accident. This was the issue in a recent court case.

The Court of Appeals, Eastland, Texas, decided a case on June 3, 2010, where this was the issue. Or more specifically, the issue was more along the line; How much does the insurance company for the at fault driver have to pay for these charges? The opinion was authored by Justice, Rick Strange. The style of the case is, Underwriters at Lloyds of London v. Robert Harris, Individually and d/b/a Harris Garage.

In this case, Robert Harris (Harris) filed suit against Underwriters at Lloyds of London (Underwriters) seeking towing and storage charges and attorney’s fees. The jury found in favor of Harris in all three causes of action and Underwriters appealed.

Negligent Entrustment Claims

July 1, 2010 | Mark S. Humphreys

What does it take for someone in Weatherford, Aledo, Dallas, Mesquite, Garland, or some other city in Texas to be guilty in negligently entrusting their vehicle to another person? What happens if you sue someone for negligent entrustment and a court finds that you should not have sued for that reason?

The Texas Court of Appeals in Austin, decided a case on August 1, 2008, that addresses both questions. The style of the case is, T. Christopher Robson v. Garrett Gilbreath and David Gilbreath.

In this case, the driver of a car, Garrett Gilbreath, struck and killed Elizabeth Daley a relative of Christopher Robson. The owner of the car was David Gilbreath, the father of Garrett. Robson asserted that David was guilty of “negligently entrusting a large vehicle, such as his Chevrolet Suburban, to a sixteen year old minor, Garrett, who had little driving experience.”