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The Texas Supreme Court has issued a decision setting forth five rules about statutory bad faith under the state's Insurance Code.
After Hurricane Ike struck Galveston Island in September 2008, Gail Menchaca contacted her homeowner's insurance company, USAA Texas Lloyds Co., and reported that the storm had damaged her home. USAA sent an adjuster to investigate Ms. Menchaca's claim, and the adjuster found only minimal damage.
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