Insurers Have a Common Law Duty to Deal Fairly and in Good Faith with Their Insurers: Arnold v. National County Mutual Fire Insurance Co., 725 S.W.2d 165 (Tex. 1987)
Lish, Mark E.
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Examines a Texas case involving an insurance company’s refusal to pay the claim of one of its insureds who was struck by an uninsured motorist. The Texas supreme court affirmed the decision of the trial court that the insured’s cause of action was barred by provisions in the Insurance Code, but reversed the ruling that insurers owe no duty of good faith and fair dealing to those whom they insure. The author asserts that this ruling will serve to rectify the disparity in bargaining power between insurers and insureds.
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