Texas Statutes and Rules Common to Life and Health Insurance
A beneficiary asks in writing why her claim was denied, and the insurer never explains. How does Texas law treat that silence?
Answer and explanation
Answer: D. Failing to provide a prompt, reasonable explanation of the basis for a denial or a compromise offer is listed among the unfair settlement practices.Source: Texas Insurance Code — Tex. Ins. Code ch. 541, subch. B, explanation of denial
More texas statutes and rules common to life and health insurance questions
- An agent circulates false statements calculated to injure a competing insurer’s financial reputation and induce a customer to surrender a policy. Which Texas provisions apply?
- An agent offers to pay $500 cash to a client as an inducement to buy a $500,000 whole life policy. What illegal trade practice under TIC § 541.056 has occurred?
- An agent offers to pay the first month's premium out of her own commission if the client buys the policy today. How does Texas law treat this?
- An agent repeatedly violates Texas insurance law after prior regulatory warning. Which action fits the Commissioner's disciplinary powers?
- An agent runs an advertisement emphasizing guaranteed dividend returns on whole life policies. How is this ad classified under 28 TAC § 21.108?
- An annuity advertisement uses a testimonial from a customer who is not a spokesperson. What must the testimonial reflect?
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