Insurance

Question 1

Insurance Law

Answer 1

Governed by the Texas Insurance Code

Question 2

Insurance Law- Unfair methods of competition and deception

Answer 2

Code prohibits unfair methods of competition and unfair or deceptive acts or practices in the insurance business

Question 3

Violations of the Insurance Code

Answer 3

1) misrepresentation and false advertising of policy contracts
2) false information and advertising generally
3) defamation
4) boycott, coercion, and intimidation
5) false financial statement
6) stock operations and advisory board contract
7) unfair discrimination
8) Rebates
9) deceptive names, words, symbols, or slogans
10) unfair settlement practices
11) misrepresentation of insurance policy

Question 4

Insurance Code- Relief available

Answer 4

A claim may be filed by any person who sustains actual damages caused by unfair methods of competition or unfair or deceptive acts or practices in the business of insurance

Question 5

Insurance Code- Remedies

Answer 5

If the D knowingly committed the acts, an amount may be awarded for up to 3x the amount of actual damages

Question 6

Insurance Code SOL

Answer 6

Within 2 years of within 2 years after the P discovered or should have discovered the violation

Question 7

Insurance Code- Notice Requirement

Answer 7

A consumer must give 60 days written notice before filing a suit

Question 8

Unfair Claim Settlement Practice Act

Answer 8

includes a failure to attempt in good faith to settle claims in which liability is reasonably clear, and compelling policyholders to bring suit by offering substantially less than the amounts ultimately recovered

Question 9

Prompt Payment of Claims

Answer 9

Within 15 days after receipt of notice of claim, an insurer must acknowledge receipt and commence an investigation

Insurer must accept or reject claim within 15 days after receiving all required items

Damages will be awarded if insurer does not pay claim in 60 days

Question 10

Common Law duty of good faith

Answer 10

an insurer owes a duty of good faith and fair dealing to an insured

Under the Stowers Doctrine: where there is a 3P claim against an insured, an insurer is obligated to accept a settlement offer within the policy limits or be liable for any additional damages imposed on the insured