What is a bad faith insurance claim?
Your insurance company has a duty to handle your claim promptly, reasonably, and in “good faith.” A “bad faith” lawsuit is really a lawsuit for the breach of the common law duty of good faith and fair dealing in the performance of a contract under Texas law. If an insurance company fails or refuses to honor its contract and pay a valid claim, you may have the right to bring a civil action for damages against that insurance company. The primary Texas statute that regulates the conduct of insurance companies in Texas is Chapter 541 of the Texas Insurance Code.
