Sec. 912.156. CONTESTING CLAIM FOR CERTAIN PURPOSES PROHIBITED. (a) In this section, "full payment" means payment of the full amount of a loss actually sustained on the occurrence of the contingency against which the insurance coverage is obtained, not to exceed the maximum amount stated in the policy.
(b) A county mutual insurance company may not contest a claim:
(1) only for delay or a captious or inconsequential reason; or
(2) to force a settlement for less than full payment.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Structure Texas Statutes
Title 6 - Organization of Insurers and Related Entities
Subtitle F - Farm and County Mutual Insurance Companies
Chapter 912 - County Mutual Insurance Companies
Subchapter D. Policies and Coverage
Section 912.151. Kinds of Insurance Authorized
Section 912.153. Contract Terms: Incorporation of Bylaws
Section 912.154. Amount of Insurance Under Multiple Hazards Policy
Section 912.155. Repair or Replacement of Insured Property
Section 912.156. Contesting Claim for Certain Purposes Prohibited