ACTIONS AGAINST INSURANCE CARRIER FOR BREACH OF DUTY

Tex. LABOR Code ch. 416

in effect

Tex. LABOR Code § 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.

Tex. LABOR Code § 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.

Source: TX Statutes (Official Site)URL: https://statutes.capitol.texas.gov/Fetched: 6/29/2026