Texas Statutes and Rules Common to Life and Health Insurance

A Texas insurer has a clear liability on a life claim but refuses to settle until the beneficiary hires a lawyer and sues. Which unfair practice is this?

Answer and explanation
Answer: D. Chapter 541's unfair settlement practices include failing to attempt in good faith a prompt, fair, and equitable settlement of a claim when the insurer's liability has become reasonably clear.Source: Texas Insurance Code — Tex. Ins. Code ch. 541, subch. B, unfair settlement practices

On the exam in: Texas · difficulty: medium

590 Texas questions like this one.

Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.

Take the free test Practice all 590 Texas questions

Scan with your iPhone camera

It opens the App Store on your phone — practice fits in the commute and between calls.