CHAPTER 416. ACTIONS AGAINST INSURANCE CARRIER FOR BREACH OF DUTY
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.