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Insurance Lawsuits

you have options to hold your insurance provider accountable

Lawsuits Against a Texas Insurance Company

An insured party can bring a lawsuit against their insurance company for breach of contract, misrepresentation, nondisclosures, unfair settlement practices, or other misconduct. An insurance policy is a contract between an insured party and an insurance company. The policy spells out the obligations of both the insurer and the insured. When either party fails to fulfill their obligations under the policy, they are in breach of contract. When an insurance company does not fulfill their contractual obligations under the policy, the insured party can sue them.

An insured party seeking to recover damages under an insurance contract must be able to prove:

  • The insurance contract existed and was in force at the time of the loss.
  • The insured party complied with the terms of the insurance contract.
  • The insurer has breached the terms of the insurance contract.

Under a breach of contract lawsuit, the insured may recover the policy benefits they are entitled to. The insured may also be entitled to recover foreseeable consequential damages that result from the insurer's breach of contract.

Misrepresentation & Nondisclosure Issues in Texas

At issue in many insurance lawsuits is the matter of misrepresentation. For example, when a claim is made under an insurance policy, the insured party may feel that the coverage provided by the insurance company is less than what was represented or promised to them by the insurance company or its agent at the time of sale. If an insurance company or its agent promises one thing and then fails or refuses to fulfill that promise, they can be held liable for breach of contract, negligence, fraud, unfair insurance practices, or deceptive trade practices.

Insurance companies must clearly and fully disclose any limitation or exclusions an insurance policy may contain.
If they fail to adequately disclose such limitations or exclusions and then later use them as a reason for denying a claim, they may be liable for deceptive trade practices or unfair insurance practices.

Unfair Settlement Practices & Other Forms of Misconduct

Laws related to insurance settlement practices exist to protect insured parties from unfair or negligent practices of insurance companies. If an insurance company fails or refuses to pay benefits that are owed under the policy, if they pay them too slowly, or if they fail to act promptly to settle, they may be in violation of laws that exist to protect consumers. Similarly, if an insurer's adjusters fail to adequately investigate a claim and pay too little as a result, then they have done a disservice to their customer, and they can be held legally liable for it in an insurance lawsuit.

There are other ways that an insurance company may violate the law or cause harm to customers. If an insurance company unreasonably terminates an insurance policy, unfairly discriminates against customers, or commits other unconscionable acts, they may be liable for their actions.

If an insurance company has injured you through negligence, unfair or deceptive practices, or unlawful discrimination, you may be entitled to compensation for your loss, including compensation for damages over and above the insurer's obligations under your policy. Compensation that can be claimed varies according to the nature of the claim and lawsuit but can include (depending on the circumstances) all benefits owed under the insurance policy, economic damages, compensation for mental anguish, attorney's fees, and any other relief the court deems proper. At Arnold & Itkin LLP, a Houston business litigation attorney can help you recover these compensable damages.

Contact a Houston insurance lawyer today for more information. Call us at (888) 493-1629.

Insurance Lawsuit FAQ

When Can I Sue My Insurance Company?

It’s possible to sue an insurance company after they’ve committed something that is referred to as acting in bad faith. An insurance company is acting in bad faith when they do things like deny valid claims, misrepresent policies, and more.

Are Insurance Companies Required to Act Quickly?

Yes, insurance companies are required by the law to respond to claims within a reasonable amount of time. In Texas, a company has 15 days to acknowledge a new claim.

Why Is My Claim Being Delayed or Denied?

Insurance companies are businesses that want profits. Often, they’ll delay or deny a claim to protect their profits as much as possible. For example, an insurance company might repeatedly delay paying out a claim because they know that the claimant needs it. Then, they’ll offer a low settlement with the hopes that a person will accept it out of desperation. Sometimes, insurance companies will outright deny claims they know are valid hoping that the claimant will accept the denial. If your company is delaying or denying your claim, you need help from an insurance claim lawyer.

Case Results

Check Out Our Victories

  • $8 Billion Top 3 Largest Jury Verdict in U.S. History Arnold & Itkin LLP tried a Risperdal case against Johnson & Johnson for failing to warn about one of the drug’s most damaging side effects: gynecomastia. Our skill, hard work, and dedication resulted in the third-largest jury verdict ever obtained ...
  • $357 Million Largest Workplace Accident Settlement in Texas history Arnold & Itkin LLP secured a massive nine-figure settlement against a transnational corporation for a workplace incident. The settlement set a Texas record for being the largest personal injury settlement in the state’s history.
  • $205 Million Confidential Settlement Obtained for Numerous Clients Arnold & Itkin reached a record $205,000,000 settlement on behalf of clients after several years of hard-fought litigation. The case settled just before trial was set to begin.
  • $171 Million One of the Largest Confidential Settlements in History Arnold & Itkin worked over the course of several years to represent clients in a case that many other law firms turned down. In the end, we were able to obtain a record-setting confidential settlement of $171 million.
  • $117 Million Largest Single-Event Personal Injury Verdict in Louisiana History Arnold & Itkin represented a pregnant woman who experienced stomach pain and called Acadian Ambulance. The driver of the ambulance drove the ambulance into the back of a sugar cane truck causing the plaintiff's spine to be severed at T4 and for her ...
  • $116 Million Confidential Settlement Arnold & Itkin LLP negotiated a massive nine figure settlement on behalf of their clients after several years of hard fought litigation.
  • $110 Million Record Settlement Achieved for Victims of Defective Products Arnold & Itkin obtained a record settlement for individuals harmed by defective, dangerous products. The result exemplifies our commitment to clients and justice for those seriously injured by the conduct of others.
  • $105 Million Record Settlement for Dangerous Product Victims Arnold & Itkin’s legal team helped represent those harmed by dangerous products. We were successful in recovering a $105 million settlement.
  • $97 Million Massive Settlement Secured for Refinery Workers Arnold & Itkin is proud to share that after months of preparation for trial, our firm was able to secure a huge settlement for clients who were injured in a refinery fire. Find out more now.
  • $92.7 Million Record Settlement for Burn Injury Victim Arnold & Itkin LLP secured a substantial settlement for a man who suffered severe burns in an accident at his job. The settlement set a new record statewide for workers with similar injuries.
See All Results

Coming here to Arnold & Itkin puts a very high standard that I would hold up. They were always able to answer any questions, available any time that we needed. The outcome that they got is great.

Rhonda Wife of Work Accident Victim

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