Texas Supreme Court opinions on two recent “bad faith” claims are likely to change the way insurers do business in the Lone Star State.
In both cases, the policyholder submitted a claim to State Farm – one of the five worst insurers profiled in our Bad Faith Rogues Gallery earlier this year.
Both claims were denied coverage on the basis that the observed damage didn’t exceed either policy deductible. Only when first-party bad faith lawsuits were filed did this insurer attempt to take corrective action.
What exactly happened?
Below, we’re going to take a closer look at these cases, what “bad faith” means in Texas, and the changes expected in the handling (or mishandling) of future insurance claims due to [...]