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eBook details

• Title: Allstate Insurance Co. v. Bonner
• Author : Texas Supreme Court
• Release Date : January 10, 2001
• Genre: Law,Books,Professional & Technical,
• Pages : * pages
• Size : 58 KB

Description

The question we consider is whether an insurer that does not comply with the claim acknowledgment requirements of Texas Insurance Code article 21.55, section 6 must pay its insureds attorneys fees when the insured is awarded uninsured motorist benefits that do not exceed personal injury protection benefits previously paid by the insurer under the policy. The court of appeals affirmed a take-nothing judgment against the insured, Rhonda Bonner, but awarded attorneys fees under article 21.55, section 6 of the Insurance Code because Allstate had not timely acknowledged Bonners claim. __ S.W.3d __. We hold that section 6 makes the insurers liability on the claim a prerequisite for imposing penalties. Because the previously paid benefits exceeded the amount awarded to Bonner for her uninsured motorist claim, Allstate was not liable for the claim under the terms of the insurance policy and therefore did not owe attorneys fees under article 21.55, section 6. Accordingly, we reverse that part of the court of appeals judgment awarding Bonner attorneys fees and costs and render judgment that Bonner take nothing.

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