Lawsuits Against Texas Insurance Companies
You Deserve to Be Treated in Good Faith
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 limitations or exclusions an insurance policy may contain. If they fail to adequately disclose these and then later use them as a reason for denying a claim, they may be liable for deceptive trade practices or unfair insurance practices.