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State Farm Mutual Automobile Association v. Cook

Court: Tx 4-San Antonio  09/18/2019  UM/UIM Insurer May Be in Bad Faith by Refusing to Pay Until It Has a Duty to Pay

The court has held that a UM/UIM insurer may be in bad faith if it refuses to pay benefits until after its insured obtains a judgment against the other driver, even though the insurer's duty to pay does not arise until the insured obtains a judgment, if it is reasonably clear that the insurer ultimately will owe the payment.

automobile liability insurance policy, underinsured motorist, uninsured motorist, UM, UIM, bad faith, extra-contractual, Prompt Payment of Claims Act, reasonably clear, reasonable investigation

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