Appraisal Law: Ortiz v. State Farm Lloyds

This summer, Texas issued important cases on Insurance Dispute Resolution involving Appraisal Law.

The Court held that the insurer’s payment of the award bars the insured’s breach of contract claim premised on its alleged failure to pay the amount of the covered loss. The Court further held that the payment bars the insured’s common law and statutory bad faith claims to the extent that the only actual damage sought are lost policy benefits. However, the Court held that the insured could proceed on a claim under the Prompt Payment Act.