Is there a time limit within which one must file claims under the Texas Insurance Code for unfair claims settlement practices?
Yes. Under the Texas Insurance Code, a person must bring an action within two years of (1) the date the unfair or deceptive act or practice occurred; or (2) the date the person discovered or, by the exercise of reasonable diligence, should have discovered that the unfair or deceptive act or practice occurred. Tex. Ins. Code. § 541.162(a)(1-2). This two year limitations period may be extended for 180 days if the plaintiff proves that the failure to bring the action within the two year period was caused by the defendant’s attempt to induce the plaintiff to refrain or postpone bringing the action. Tex. Ins. Code. § 541.162(b).
A cause of action under the Insurance Code for unfair claims based on denial of insurance coverage accrues on the date that the insurer denies coverage. See Celtic Life Ins. Co. v. Coats, 885 S.W.2d 96, 100 (Tex. 1994).
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Showing posts with label Insurance Claims. Show all posts
Showing posts with label Insurance Claims. Show all posts
Thursday, February 19, 2015
Wednesday, February 18, 2015
Statute of Limitations for an Insurer’s Breach of the Duty of Good Faith and Fair Dealing
If my insurance company cancelled my insurance policy without a reasonable basis or denied payment of a claim when it was required to pay, is there a limited time within which I have to file a lawsuit against the insurance company?
Yes. Claims against an insurer for breach of the duty of good faith and fair dealing must be brought not later than two years from the date the claim accrued. See Tex. Civ. Prac. & Rem. Code § 16.003(a); Murray v. San Jacinto Agency, Inc., 800 S.W.2d 826, 827 (Tex. 1990). The “accrual date” (the date when the two year limitations period begins to run) is the day the insurer wrongfully denied coverage. See Murray, 800 S.W.2d at 828. The fact that damage may continue to occur for a period after the denial date does not prevent the statute of limitations from starting to run. Id. However, if the insurance company “strings the insured along” without denying or paying the claim, then the accrual date may be tolled. See, e.g., Murray, 800 S.W.2d at 829 n.2.
Yes. Claims against an insurer for breach of the duty of good faith and fair dealing must be brought not later than two years from the date the claim accrued. See Tex. Civ. Prac. & Rem. Code § 16.003(a); Murray v. San Jacinto Agency, Inc., 800 S.W.2d 826, 827 (Tex. 1990). The “accrual date” (the date when the two year limitations period begins to run) is the day the insurer wrongfully denied coverage. See Murray, 800 S.W.2d at 828. The fact that damage may continue to occur for a period after the denial date does not prevent the statute of limitations from starting to run. Id. However, if the insurance company “strings the insured along” without denying or paying the claim, then the accrual date may be tolled. See, e.g., Murray, 800 S.W.2d at 829 n.2.
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