Texas Ruling Could Mean Bigger Paydays For Policyholders

By Jess Krochtengel (April 11, 2017, 10:54 PM EDT) -- The Texas Supreme Court on Friday restored protections for policyholders by putting teeth back into statutory provisions that penalize carriers for deceptive practices in an opinion insurance lawyers say is one of the most important in recent history.

In USAA Texas Lloyd's v. Menchaca, the court set out five rules governing the intersection between claims for a breach of an insurance policy and claims of wrongdoing under the Texas Insurance Code, in what it said was intended to clarify decades of confusing precedent. Insurance lawyers say the decision will likely revive claims for treble damages under the code, an important tool...

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