Texas Statutes and Rules Common to Life and Health Insurance

A Texas insurer routinely offers beneficiaries substantially less than the policy face amount, hoping some will accept. What does this practice violate?

Answer and explanation
Answer: D. Chapter 541 forbids compelling a policyholder to institute a suit to recover an amount due by offering substantially less than the amount ultimately recovered.Source: Texas Insurance Code — Tex. Ins. Code ch. 541, subch. B, low-ball settlement offers

On the exam in: Texas · difficulty: medium

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