Texas Insurance Code § 912.156 Contesting Claim For Certain Purposes Prohibited

Sec. 912.156. CONTESTING CLAIM FOR CERTAIN PURPOSES PROHIBITED. (a) In this section, "full payment" means payment of the full amount of a loss actually sustained on the occurrence of the contingency against which the insurance coverage is obtained, not to exceed the maximum amount stated in the policy.

(b) A county mutual insurance company may not contest a claim:

(1) only for delay or a captious or inconsequential reason; or

(2) to force a settlement for less than full payment.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.

Section: Previous  912.101  912.102  912.151  912.152  912.153  912.154  912.155  912.156  912.157  912.201  912.202  912.203  912.204  912.251  912.301  Next

Last modified: September 28, 2016