Texas Insurance Code

§ 912.156 — CONTESTING CLAIM FOR CERTAIN PURPOSES PROHIBITED

IN § 912.156Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part F. FARM AND COUNTY MUTUAL INSURANCE COMPANIES · Ch. 912. COUNTY MUTUAL INSURANCE COMPANIES · Art. D. POLICIES AND COVERAGE

Statute text

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(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.

Legislative history

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