Jury Finds Texas Mutual Guilty Of Bad Faith Insurance Practices

A Texas jury recently found that Texas Mutual Insurance Company acted in bad faith after it failed to provide medical records to the doctor of a workers compensation recipient and violated the Texas Insurance Code.

No workers compensation fraud

A Texas fireman injured his back in 2000 after lifting an accident victim. He received workers compensation and was treated by a doctor. Three years later, he re-injured his back and had to undergo surgery for a herniated disk. The insurance carrier, Texas Mutual Insurance Company (TMIC), had initially paid the claim, but then started inquiring about his original back injury in 2000. TMIC wondered whether the fireman had a pre-existing condition and was questioning whether it should have paid for medical care at all.

During the investigation, the TMIC allegedly failed to provide the fireman’s doctor with pertinent medical records and filed a claim against the fireman for fraud, which was never proven. The fireman sued TMIC for bad faith. A Texas jury found in his favor and awarded him nearly $750,000 for the mental anguish that he went through, the damage to his credit reputation and for TMIC’s intentional violation of the Texas Insurance Code.

What are bad faith insurance practices?

All insurance companies have a duty to treat their policyholders in good faith and deal with them fairly. However, some insurance companies would rather not pay claims at all or pay as little as possible in order to increase their profits. It’s a common theme throughout the insurance industry as a whole. However, when insurance companies do not treat their policyholders fairly, those policyholders can fight back by contacting their state’s Insurance Department and an attorney with experience in bad faith insurance litigation. Unfortunately, bad faith insurance practices aren’t limited to workers compensation issues; they can occur in any insurance setting including disability, long term care, health care, homeowners and many more.

Contact an attorney whose practice focuses in this area of the law. Consultations are free, without obligation and are strictly confidential.

Case Studies: Exposing Bad Faith Insurance Practices

Case Study 1: Challenging Bad Faith Practices in Workers Compensation Insurance

In a workers compensation case, a Texas fireman filed a lawsuit against Texas Mutual Insurance Company (TMIC) for acting in bad faith. The fireman had injured his back while on duty and received workers compensation benefits. However, when he re-injured his back and required surgery, TMIC began questioning his original injury and withheld relevant medical records from his doctor.

TMIC even filed a claim of fraud against the fireman, which was later unsubstantiated. The fireman sued TMIC for bad faith, alleging intentional violation of the Texas Insurance Code.

A Texas jury found in favor of the fireman, awarding him nearly $750,000 for mental anguish, damage to his credit reputation, and TMIC’s intentional misconduct.

Case Study 2: Fighting Back Against Unfair Insurance Practices

Bad faith insurance practices are not limited to workers compensation issues. They can occur in various insurance settings, including disability, long-term care, health care, and homeowners insurance. Policyholders who believe they are being treated unfairly by their insurance companies have the right to fight back.

By contacting their state’s Insurance Department and seeking legal representation from attorneys experienced in bad faith insurance litigation, policyholders can hold the insurance companies accountable.

These attorneys can help policyholders navigate the complex legal landscape, protect their rights, and seek fair compensation for the damages caused by the insurer’s bad faith practices.

Case Study 3: Upholding the Duty of Good Faith and Fair Dealing

Insurance companies have a duty to treat their policyholders in good faith and deal with them fairly. However, some insurers prioritize profit over fulfilling their obligations to policyholders.

They may engage in practices aimed at minimizing claim payouts or denying valid claims altogether. When insurers fail to meet their duty of good faith and fair dealing, policyholders have recourse.

By working with attorneys specializing in bad faith insurance litigation, policyholders can seek justice and hold the insurers accountable for their actions. These attorneys can help policyholders build a strong case, navigate the legal process, and pursue compensation for the harm caused by the insurer’s bad faith practices.