What types of claims can be made under insurance litigation law?

Under Texas insurance litigation law, claimants can make a variety of claims. These claims can include breach of contract, negligent claims handling, extra-contractual claims, insurance bad faith, rescission of coverage, and unfair settlement practices. A breach of contract claim occurs when an insurance company fails to follow the terms of its agreement with its policyholder. This can include not providing coverage for a claim that is covered by the policy, not investigating claims timely, or delaying payment for a claim. Negligent claims handling occurs when an insurance company’s handling of a claim falls below the accepted standard of care. This includes failing to properly investigate a claim, failing to process claims in a reasonable amount of time, or by denying a valid claim. Extra-contractual claims involve compensation for damages that go above and beyond the policy limits. These claims are based on the insurance company’s bad faith, and the goal is to punish the insurer for its actions. Insurance bad faith claims involve the insurer’s refusal to pay a claim without justification. This can include denying a claim without enough evidence or attempts to confuse or mislead the policyholder. Rescission of coverage claims are made when an insurance company wrongfully cancels or terminates a policy without proper notice. Policyholders may be able to recover their money if they can prove their claim is valid. Finally, unfair settlement practices claims seek damages for an insurance company’s refusal to settle a claim in a reasonable manner. This includes not making a reasonable offer, failing to investigate the claim properly, or not acting in good faith.

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What types of claims can be made under insurance litigation law?

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