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Texas Insurance Code - INS § 542.003. Unfair Claim Settlement Practices Prohibited

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(a) An insurer engaging in business in this state may not engage in an unfair claim settlement practice.

(b) Any of the following acts by an insurer constitutes unfair claim settlement practices:

(1) knowingly misrepresenting to a claimant pertinent facts or policy provisions relating to coverage at issue;

(2) failing to acknowledge with reasonable promptness pertinent communications relating to a claim arising under the insurer's policy;

(3) failing to adopt and implement reasonable standards for the prompt investigation of claims arising under the insurer's policies;

(4) not attempting in good faith to effect a prompt, fair, and equitable settlement of a claim submitted in which liability has become reasonably clear;

(5) compelling a policyholder to institute a suit to recover an amount due under a policy by offering substantially less than the amount ultimately recovered in a suit brought by the policyholder;

(6) failing to maintain the information required by Section 542.005 ;  or

(7) committing another act the commissioner determines by rule constitutes an unfair claim settlement practice.

Cite this article: - Texas Insurance Code - INS § 542.003. Unfair Claim Settlement Practices Prohibited - last updated April 14, 2021 |

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