If you feel that your insurance company wrongfully denied benefits due to you, you should contact our office immediately for a free consultation.

SUBMISSION FORM BOX

You may also visit the Texas Department of InsuranceÕs website to learn how you can file a compliant against your insurance company. File your complaint here. http://www.tdi.state.tx.us/consumer/complfrm.html

Insurance companies deny benefits due to you for no good faith reason. You have rights under the policy.

Did this happen to you?

You applied for credit insurance when you bought a vehicle, home, or obtained a loan.

A loved one passed away.

You applied for insurance benefits to pay off the note or loan.

You received a letter from the insurance company stating:

• No benefits were due because of pre-existing medical condition;
• No benefits were due because of misrepresentation or inaccurate information on insurance application;
• An offer to settle for less than full amount of coverage;
• It is conducting a Òspecial investigationÓ for an indefinite period.

If so, you should consult an attorney to determine if your insurance company is violating your rights under the policy.

CREDIT INSURANCE

Credit Insurance is insurance that you can purchase when you take out a loan that protects both you and the lender in the event that you are unable to pay the loan due to death, disability or unemployment. Credit insurance is sold in connection with a specific loan. The cost of the insurance is generally included in the loan payment.

What are the types of credit insurance?

There are several types of credit insurance:

• Credit life insurance: This insurance pays off a loan if the insured passes away. When a borrower dies the proceeds of the policy are used to pay off all or part of the borrower's debt. The payment goes to the lender, which is the named beneficiary on the insurance policy. If the insurance proceeds are greater than the debt the surplus is paid to the borrower's estate.
• Credit disability insurance: Also called accident and health insurance. This insurance pays a monthly benefit directly to the lender equal to the loanÕs minimum monthly payment if the insured becomes disabled. Typically, you must remain disabled for a certain number of days before a benefit is paid. In some cases, the benefit is retroactive to the first day of disability and the insured can recover those payments. In other cases, the benefit begins only after the waiting period is satisfied. Some common waiting periods are 14 days and 30 days.
• Credit unemployment insurance: This insurance is also called involuntary unemployment insurance. It pays a monthly benefit directly to the lender equal to the loanÕs minimum monthly payment if the insured becomes involuntarily unemployed such as through a layoff. The insured typically must remain unemployed for a certain number of days before a benefit is paid. In some cases, the benefit is retroactive to the first day of unemployment and benefits will be paid accordingly. In other cases, the benefit begins only after the waiting period is satisfied. A common waiting period is 30 days
• Credit Property Insurance: This is insurance written in connection with a credit transaction where the collateral is not a motor vehicle, mobile home or real estate and that (1) covers perils to the goods purchased through a credit transaction or used as collateral for a credit transaction and that concerns a creditor's interest in the purchased goods or pledged collateral either in whole or in part; or (2) covers perils to goods purchased in connection with an open end credit transaction.

May claims be denied on credit insurance?

Sometimes.

However, oftentimes insurance companies deny claims that they should pay. The insurance companies take the risk that you will do nothing about it and do not know your rights. They also sometimes delay the benefits while you make payments on the loan to minimize what they should pay out to you. The amount due under a typical policy is the amount owed at the time of death Ð not what is due on the note when the insurance company decides to pay you.

You should read the insurance application carefully and see if there are any misrepresentations provided by the insured. Any misrepresentation must be material to why the claim was denied by the insurance company. Please also review the fine print to determine when the coverage ends and what the coverage includes. If you hire an attorney, you can also recover attorneysÕ fees and other damages for a wrongful denial or delay.

Please contact us to discuss your case.

LIFE INSURANCE

What are the types of Life Insurance?

Group life insurance

Group life insurance is available through an employer or association that covers participating employees and members under one master insurance policy. Most group life insurance policies are term insurance policies that terminate when the member or employee reaches a certain age or leaves the organization and do not accumulate any cash surrender value.

Term life insurance

Term life insurance provides a pre-set amount of coverage if the policyholder dies during the period of time specified in the policy. Term periods can be for 1 year, 5 years, 10 years, 15, 20 and even 30 years. Policyholders usually have the option to renew at the end of the term for the period of years specified in the policy. Unlike whole life insurance, premiums generally increase as the insured person gets older and the risk of death increases.

Universal life insurance

Like whole life insurance, universal life insurance accumulates cash value through investment of the premium payments. The unique feature of universal life insurance is that it has variable premiums, benefits and payment schedules, all of which are tied to market interest rates and the performance of the investment portfolio. Also, universal life policies normally provide you with more consumer information. For example, you are told how much of your policy payments goes for insurance company overhead expenses, reserves and policy proceed payments, and how much is retained and invested for your savings.

Variable life insurance

Variable life insurance is a type of whole life insurance in which the amount of death benefits varies, depending on the performance of investments. The insurance company places some or all of the fixed premium payments into an investment account; some companies let the insured person decide how the money is invested. The policyholder bears the risk of investment losses, though there is a guaranteed minimum benefit payment. One benefit of variable insurance is that interest and dividend income from the investment account is not taxed until it is paid out to the policyholder.

Variable universal life insurance

This is a type of whole life insurance that provides greater potential for financial gain--and brings greater risks. Like universal life insurance, variable universal life insurance offers flexible premiums, payment schedules and benefits. Variable universal life policies are riskier because the premiums are invested in stocks, rather than more predictable money market accounts and bonds.

Whole life insurance

Whole life insurance provides coverage for the entire life of the policyholder, who pays the same fixed premium throughout his or her life. The policy builds up cash reserves that may be paid out to the policyholder when he or she surrenders or partially surrenders the policy or uses the cash reserves to fund low-interest loans. The annual increase in the cash value of the policy is not taxed. If the policyholder surrenders the policy, a portion of the payment is not taxable. This type of life insurance is also called straight life insurance or ordinary life insurance.

UNINSURED MOTORIST/UNDERINSURED MOTORIST INSURANCE

Texas law requires drivers to have automobile liability insurance, which is the insurance that pays for the other person's expenses if you cause an accident. Minimum liability coverage in Texas is $25,000 per injured person, with up to a maximum of $50,000 for all injured persons in the same accident. This coverage is usually shown on your policy as 25/50/25. Minimum coverage requirements increased to 25/50/25 ($25,000/$50,000/$25,000) in 2008 and will increase again to 30/60/30 in 2011.

Every driver on Texas highways is legally obligated to carry liability insurance to protect other drivers. In reality however, many people have no insurance, or they hit and run, or, even if they have the minimum coverage required by law, it is not enough to cover the other driver's damages.

What is an uninsured and underinsured?

An uninsured driver is someone who either has no insurance or who hits and runs another vehicle. An underinsured driver is one who does have liability insurance, but in an amount that is not enough to cover the other driver's property or bodily injury damages. For example, a negligent driver might have 20/40/15 minimum coverage but be found liable for $40,000 in bodily injury damages. If you have underinsured coverage, it would pay the $20,000 difference for your injuries and damages.

Texas law gives you the opportunity to buy insurance coverage to protect yourself against both uninsured and underinsured motorists. This coverage is optional and you must waive this coverage in writing when you buy the insurance. On your policy, this coverage will be shown as UIM or UM on the declaration page.

UIM and UM coverage protects you, your family members, passengers in your vehicle, and anybody driving your vehicle with your permission. It pays your medical and funeral expenses, car repairs, car rental, the replacement of damaged contents, lost wages, pain and suffering, disfigurement, and permanent or partial disability up to the dollar limits that you have purchased.

Uninsured and underinsured motorists often have few assets, and you could face significant financial hardship if you do not have this coverage and you are injured by such a driver. Even if the other driver has liability insurance, it may be only the minimum amount of $25,000, and this coverage can quickly be exhausted with a trip to the hospital. The replacement cost of even a single vehicle easily can be $30,000 or more. Your underinsured coverage will be triggered for all or part of the difference once the other person's liability limits are exhausted.

If you believe you or loved one has wrongfully been denied or delayed insurance benefits, please contact our office for a free consultation by submitting your information here or calling us at 713-864-1941. Please have your insurance policy and the correspondence from your insurance company ready for our review.