CHAPTER 416. ACTIONS AGAINST INSURANCE CARRIER FOR BREACH OF DUTY - Texas Statutes

LABOR CODE

TITLE 5. WORKERS' COMPENSATION

SUBTITLE A. TEXAS WORKERS' COMPENSATION ACT

CHAPTER 416. ACTIONS AGAINST INSURANCE CARRIER FOR BREACH OF DUTY

Sec. 416.001. CERTAIN CAUSES OF ACTION PRECLUDED. An action

taken by an insurance carrier under an order of the commissioner

or recommendations of a benefit review officer under Section

410.031, 410.032, or 410.033 may not be the basis of a cause of

action against the insurance carrier for a breach of the duty of

good faith and fair dealing.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.

Amended by:

Acts 2005, 79th Leg., Ch.

265, Sec. 3.284, eff. September 1, 2005.

Sec. 416.002. EXEMPLARY DAMAGES. (a) In an action against an

insurance carrier for a breach of the duty of good faith and fair

dealing, recovery of exemplary damages is limited to the greater

of:

(1) four times the amount of actual damages; or

(2) $250,000.

(b) An action against a governmental entity or unit or an

employee of a governmental entity or unit for a breach of the

duty of good faith and fair dealing is governed by Chapters 101

and 104, Civil Practice and Remedies Code.

Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993.