INSURANCE LITIGATION

Under Texas law, insurance companies owe a fiduciary obligation to their insured. This means that insurance companies must exercise the duty of good faith and fair dealing in their relationship with the insured. Failure to do so will give rise to a cause of action known as "Insurance Bad Faith" and one under the Texas Deceptive Trade Practices Act (DTPA). These causes of action usually arise when the insurance company fails to comply with its duties under the insurance code or fails to pay a claim timely. These types of suits only apply to the person who actually purchases the insurance (homeowners on a claim for their home) and not third parties (car accident victims in another car). In Texas, an insurance company commits bad faith when the insurer had no reasonable basis for denying or delaying payment of a claim, and they knew or should have known that fact. Bad faith cases can arise in any type of insurance: medical, dental, life, automobile and homeowners.

When an insurance company violates this duty of good faith and fair dealing, or otherwise violates the Texas Insurance Code or the DTPA it may give rise to a lawsuit on behalf of the insured. In the lawsuit, the insured may be entitled to statutory penalties, treble damages and attorney fees. Insurance companies have attorneys looking out for their legal right and trying the find ways to deny your valid claim, you need to have someone to represent your legal interests.

If your insurance company is not acting quickly to settle your valid claim, give us a call at (512) 478-2211.

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