Texas Supreme Court Compels Appraisal Despite Bad Faith Allegations
The state's highest court ruled that an insured cannot bypass a policy's appraisal clause by alleging the insurer acted in bad faith or by arguing the dispute involves coverage rather than the amount of loss.
IN RE ACE AMERICAN INSURANCE COMPANY; ENDURANCE AMERICAN SPECIALTY INSURANCE COMPANY, GUIDEONE NATIONAL INSURANCE COMPANY; CERTAIN UNDERWRITERS AT LLOYD'S, LONDON AND COMPANY MARKET, SUBSCRIBING TO POLICY NO. PTNAM2206330; STARSTONE SPECIALTY INSURANCE COMPANY; STARR SPECIALITY LINES INSURANCE AGENCY, LLC; AND SHELF OPCO BERMUDA LTD. FOR AND ON BEHALF OF FIDELIS INSURANCE BERMUDA LTD.