Contesting Claim For Certain Purposes Prohibited

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.