Insurance companies in the United States are given the implied covenant of fair dealing and good faith in their duty of serving their clients. When insurance companies fail to live up to this covenant, then a bad-faith lawsuit can result.
In Houston recently, a bad faith insurance lawsuit resulted in the ruling that policyholders can collect interest on late claim payments even if the insurance company wasn’t acting in bad faith but merely delayed payments.
This is great news for policyholders but still begs the question – how do you know when an insurance company is acting in bad faith?
Here’s what you need to know about bad faith claims laws in Texas so you can understand when it may [...]