In Marchbanks v. Liberty Ins. Corp., 558 S.W.3d 308 (Tex. App. 2018), the Texas Court of Appeals held that insureds could not recover for violations of Texas’ Prompt Payment of Claims Act (Tex. Ins. Co. Ann. §542.051 et seq. (West 2013) for any type of underpayment of a claim in cases where the appraisal process was invoked at any time, even after a lawsuit had been filed, and the insurer made timely payment in accordance with the appraisal award.
TEXAS COURT OF APPEALS FINDS THAT INSURANCE COMPANY’S PAYING TIMELY TENDER OF FULL AMOUNT OF APPRAISAL AWARD PREVENTED INSURED’S RECOVERY UNDER TEXAS’ PROMPT PAYMENT OF CLAIMS STATUTE
On Behalf of Steven Plitt, Insurance Expert | Oct 10, 2019 | Insurance Law
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