INSURANCE ISSUES FOR LAWYERS: But Were Afraid to Ask

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1 INSURANCE ISSUES FOR LAWYERS: Everything You Wanted to Know But Were Afraid to Ask Martin, Disiere, Jefferson & Wisdom, L.L.P. Austin Houston Dallas

2 Insurance Law First-party claim Property damage to home, vehicle, business, E & O, Request for a liability defense Third-party claim Claims / Lawsuits against insured

3 First-Party Claims

4

5 Homeowners Contract Bound by terms Duties after loss Inspection Cooperate Records EUO Sworn Proof of Loss Forms Flood coverage TWIA

6 Homeowners Appraisal State Farm v. Johnson

7 Homeowners Recoverable Depreciation Payment for Actual Cash Value Recoverable Depreciation Withheld Repairs Completed Recoverable Depreciation Paid

8 First-Party Policy Issues Notice of claims Late Notice Prejudice

9 First-Party Policy Issues Conditions Precedent to Coverage Cooperation Appraisal Records EUO s

10 First-Party Policy Issues Suits Against Us Provision

11 First-Party Policy Issues Statute of limitations contained in the contract Two years and one day

12 First-Party Issues Extra contractual duties Good Faith and Fair Dealing Texas Insurance Code Texas Insurance Code Prompt Payment of Claims Act Chapter 542 Unfair Settlement Practices Act Chapter 541

13 Ch. 541 Settlement Opportunities Door #1 Door #2 Door #3 60 Days Before Suit 90 Days After Answer Filed Mediation Plus 20 Days

14 Third-Party Claims

15

16 Third-Party Claims Forward suit papers Cooperate

17 Third-Party Claims Reservation of rights letter Coverage counsel Tilley Counsel v. Independent counsel

18 Third-Party Claims Tilley Counsel Insurer pays Insured is client Absolute duty of loyalty to insured

19 Stowers Plaintiff demand for settlement of a third-party claim against insured

20 Stowers (1) the policy covers the claim; (2) the insured s liability is reasonably clear; (3) the claimant has made a proper settlement demand within policy limits; and (4) the demand s terms are such that an ordinarily prudent insurer would accept it.

21 Stowers Insured s potential for excess exposure shifted to insurer

22 Maximizing Coverage Show me the money Other Driver Car Owners Employers Client s UM/UIM & PIP

23 UM/UIM - First-Party Claim with a Third-Party Twist

24 UM/UIM Damages legally entitled to recover from another driver Insured v. Other Driver

25 UM/UIM & PIP Do They Have It? Insurer is Required to have Signed Rejection form

26 UM/UIM Policy requires Insured obtain Permission to Settle Third- Party Claim

27 UM/UIM Jankowiak No-fault passenger Disputed liability

28 INSURANCE ISSUES FOR LAWYERS: Everything You Wanted to Know But Were Afraid to Ask Martin, Disiere, Jefferson & Wisdom, L.L.P. Austin Houston Dallas

2010 INSURANCE LAW UPDATE. Written and Presented by: DALE JEFFERSON Martin, Disiere, Jefferson & Wisdom, L.L.P.

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