If your home were burglary, would you sit back and do nothing? No. You would probably call the police or law enforcement to report the burglary and hope they find your stolen property. If the police arrested the person who stole your property, would you release that person without penalty, liability and repayment for your stolen property? Hopefully not – you would hold them accountable for violating the law and taking something that belonged to you – they robbed you of your property that you worked hard to serve and buy.
So why would you not hold the insurance company, adjuster or other insurance staff responsible if they violate the law? Perhaps you did not know that you could, but you can, which is why it is incredibly important to know your rights under the Texas Insurance Code.
In Texas, insurance owners have rights under various laws and insurance companies and their adjusters and staff have specific laws that they are required to comply with all requirements. There are several relevant laws governing insurance practices in Texas, but this article focuses on Chapter 541 of the Texas Insurance Code titled "Unfair Methods of Competition and Unfair or Fraudulent Deeds or Practices".
Chapter 541 of the Texas Insurance Code defines, explains, and prohibits various practices and actions in the insurance industry and the management of an insurance claim.
Of particular importance, Chapter 541 of the Texas Insurance Code also sets forth various unfair settlement methods as examples of insurance events that violate the law. Examples of Infringements in Chapter 541 of the Texas Insurance Code include (but are not limited to):
- If an insurance company, adjuster or insurance staff refuses to make a claim without making a reasonable investigation on the claim
- If an insurance company, adjuster or insurance professional immediately provides a policyholder with a reasonable explanation on the basis of the insurer's denial of a
- If an insurance company, regulator, or insurance professional fails within an reasonable time to confirm or deny policyholder claims
- If an insurance company, adjuster or insurance professional fails, refuses, or unreasonably delays a settlement bid ;
- If an insurance company, adjuster or insurance staff makes a false statement about material claims ts ;
- If an insurance company, adjuster or insurance staff incorrectly proposes the terms, benefits or benefits in the insurance policy.
The above are just some of many detailed violations of Chapter 541 of the Texas Insurance Code.
In Texas, if an insurance company, insurance agent, adjuster or other insurance staff violates and / or does not comply with this part of Texas Insurance Code, insurance owners have the rights they can exercise against the offenders . For example, a policyholder may bring an action against anyone, including their insurance company or regulator, who violates these laws. Prosecutions can be brought by application for trial.
According to Chapter 541 of the Texas Insurance Code, a plaintiff (someone who raises a lawsuit against another) in a legal action against the insurance company, the adjuster, the insurance agent, or the insurance staff may receive the amount of actual damages plus legal costs and reasonable and the necessary legal fees as well as any other relief provided by the court is correct.
Texans whose homes or businesses have been harmed by the latest hail events have rights and they have access to them if the insurance company and / or the adjuster violates the Texas Insurance Code. As always, it is important to seek help from legal professionals who are highly experienced in insurance law. Many lawyers, such as the Merlin Law Group's Texas office, offer free first consultation to help policyholders learn their rights and possibly seek recruitment.
Know your rights and keep the insurance company, the adjuster and other insurance personnel responsible for their actions.