Insurance Bad Faith
One thing is clear, fraud is not your fault. You pay your premiums month after month, year after year, all in return for the promise that if you have a covered loss, your insurance company will handle your claim fairly, honestly, and in a timely fashion. But what happens when your insurance company breaks its promise to you? Do you have any recourse? The short answer is YES!
Texas courts have held that a special relationship exists between an insurance company and its insured, which requires the insurance company to act in good faith toward its insured when the insured files a claim. This means that the insurance company is under an obligation to pay your claim when it becomes reasonably clear that the claim is covered.
There are also Texas Statutes which require an insurance company to respond to a claim within certain time limits.
Insurance Companies who breach their duty of good faith and fair dealing may also be liable under the Texas Deceptive Trade Practices Act and under Article 21.21 of the Texas Insurance Code.
Examples of "bad faith" insurance practices abound. Some instances include:
- Misrepresenting to a claimant a material fact or policy provision relating to the coverage at issue.
- Failing to provide promptly to a policyholder a reasonable explanation of the basis in the policy, in relation to the facts or applicable law, for the insurer's denial of a claim or the offer of a compromise settlement of a claim.
- Failing to acknowledge and act reasonably and promptly upon notice of a claim arising out of an insurance policy.
- Failing to adopt and implement reasonable standards for the prompt investigation of claims.
- Refusing to pay claims without conducting a reasonable investigation.
- Failing to confirm or deny coverage of claims within a reasonable time after proof of loss statement has been completed.
- Failing to attempt in good faith to effectuate a prompt, fair and equitable settlement of claims in which liability has become reasonably clear.
- Failing to promptly settle claims where liability has become reasonably clear under one portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage.
Our firm represents clients in Texas who have suffered from unfair, bad-faith insurance practices. We work on claims involving denial of benefits involving:
- Homeowners Insurance
- Life Insurance
- Auto Insurance
- Commercial Insurance
- Health Insurance
- Renters Insurance
- Warranties
If you believe an insurance company is withholding benefits properly due you or is guilty of unfair insurance practices, please contact Cappolino Dodd Krebs LLP, LLP, to request a free consultation so that we may assess the merits of your particular case.
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