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
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