Client Testimonials

"My family was referred to Michael Young by an attorney friend in Austin. My elderly mother was involved in a federal court lawsuit involving over a million dollars of life insurance proceeds through an ERISA plan.  Michael filed a motion to dismiss the case and the other side responded by agreeing to a settlement very favorable to my mother. My family was pleased by Michael's aggressive representation and his prompt responses to our questions. I would recommend Michael and the firm of Sanders, O'Hanlon & Motley to anyone involved in a dispute regarding life insurance benefits or the distribution of an estate." Rafael S., Hunt County.

______________

"Michael took careful measurement of our case, asked the right questions, and respected the sensitivity of the situation.  At the end of the day, this is the type of person you want working on your side. He also worked outside of normal business hours to accommodate our busy work schedules. Despite such a stressful and frankly sad time, J. Michael Young was a strong source of support, and helped us figure out the right course of action."  -Shaun,  Travis County.

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Saturday
Nov262011

The insurer's duty of good faith and fair dealing

DateSaturday, November 26, 2011 at 7:38PM

Texas law imposes a general duty of good faith and fair dealing on isurance companies.  In essence, it means that an insurance company has a duty to deal fairly and in good faith with an insured.  The duty is imposed because of the following public policy reasons:

  • the unequal bargaining power which would allow unscrupulous insurers to take advantage of their insureds' misfortunes in bargaining for settlement or the resolution of claims;
  •  without such a duty, insurers could arbitrarily deny coverage and delay payment of the claim with no more penalty than the interest on the amount owed; and
  • an insurance company has the exclusive control over the evaluation, processing and denial of claims.

Unfortunately, the Texas Supreme Court has gradually chipped away at policy holder rights as the insurance industry has gained political power in Austin over the past dozen or so years.  It is important to contact a lawyer if you believe you or your business in Texas are not being dealt with reasonably by an insurance company.

Texas Life Insurance and Coverage Law Firm

AuthorMichael Young | CommentPost a Comment |

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