Is My Lawsuit Against National General Insurance Likely to Succeed?

Question from Sckott, Is My Lawsuit Against National General Insurance Likely to Succeed?

Answer from AI:

Evaluating Your Case Against National General Insurance

Your situation involves a dispute with National General Insurance, and you have filed a lawsuit in small claims court in Travis County, Texas. You are alleging breach of contract and bad faith insurance practices. Whether your case is “solid” depends on the specific facts, the evidence you can present, and how well you can prove the claims under Texas law. Here’s a breakdown of the key issues and considerations:

Breach of Contract Claim

• General Principle: Insurance policies are contracts between you and the insurer. If the insurer failed to fulfill its obligations under the policy, you may have a valid breach of contract claim.
• Your Allegations: You allege that the adjuster refused to consider additional evidence that could have overturned the claim decision. If the policy required the insurer to consider all relevant evidence, this could be a breach of contract.
• Damages: You are seeking compensation for increased premiums, inability to obtain coverage, and other harm. To succeed, you must show that these damages were directly caused by the insurer’s breach.

Bad Faith Insurance Practices

• Texas Law: Under the Texas Insurance Code, specifically Chapter 541, insurers are prohibited from engaging in unfair or deceptive practices. Additionally, the Texas Deceptive Trade Practices Act (DTPA) may apply if the insurer’s actions were misleading or caused you economic harm.
• Your Allegations: The refusal to provide your full claim file and locking you out of your online account by altering your personal information could be seen as bad faith or unfair practices. Insurers are generally required to act in good faith and deal fairly with policyholders.
• Proof Required: To prove bad faith, you must show that the insurer acted without a reasonable basis or knowingly denied your claim for improper reasons.

Key Considerations

1. Evidence: Gather all relevant documents, including correspondence with the insurer, the policy terms, and any evidence that was allegedly ignored. Witness statements, if any, could also be helpful.
2. Policy Terms: Review your insurance policy to understand the insurer’s obligations. Highlight any provisions that the insurer may have violated.
3. Damages: Clearly document how the insurer’s actions caused you financial harm, such as increased premiums or inability to obtain coverage.
4. Procedural Requirements: Ensure you followed all proper steps before filing the lawsuit, such as providing the insurer with notice of the dispute (if required by the policy or law).

Small Claims Court Limits

• Jurisdictional Limits: In Texas, small claims court can handle cases up to $20,000, so your claim falls within this limit.
• Procedural Simplifications: Small claims court is designed to be more accessible for individuals without legal representation. However, the court will still expect you to present a clear and well-supported case.

When to Seek Legal Advice

While small claims court is more informal, insurance disputes can be complex, especially when bad faith is alleged. If your case involves significant damages or disputed facts, consider consulting an attorney. A lawyer can help you:

• Strengthen your case with legal arguments and evidence.
• Navigate procedural requirements.
• Negotiate a settlement if needed.

Conclusion

Your case has potential merit, especially if you can provide clear evidence of the insurer’s failure to act in good faith and breach of contract. However, the outcome will depend on how well you present your case and the specific facts. For personalized advice, consult with a legal professional who can review your case in detail.

For more information on Texas insurance laws, visit the Texas Department of Insurance or review the Texas Insurance Code.