Texas Insurance Code 912.156 – Contesting Claim for Certain Purposes Prohibited
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(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.
Terms Used In Texas Insurance Code 912.156
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.