Legal Beat

It’s a Dog’s Life… And an Agent’s Lot

What is the most authoritative source of truthful information in the whole universe? No question about it. It’s Southwest Airlines’ Spirit magazine. You know. The magazine found in the seat pocket right in front of you. Yes! The one that …

Lying, Cheating and Stealing

There are a number of sins to which those providing services for money are susceptible: product ignorance, market ignorance, administrative incompetence, disloyalty and betrayal, slothfulness, untruthfulness, and stealing. Bullying and rudeness are usually not large problems. After all, they are …

Successor Liability for Renewal Commissions

Employees and operatives often have tensions and conflicts with their employers and principals. This general and highly abstract truth applies no less to insurance agents than to anyone else. Agents want a larger share of the commissions. “After all,” they …

Agents in the Claims Process

In any service industry, speed in responding to customer requests, customer satisfaction with performance (both in the short run and in the long), and accuracy in statements made are all terribly important. The three are not, however, always in harmony. …

Agent Indemnification: How Not to Get Burned

Once in a blue moon, the Supreme Court of Texas decides a case that squarely pertains to insurance agents. On April 20, 2000, Justice Alberto Gonzales, writing for a unanimous court, decided an odd one, with potential significance. It concerned …

Slavery & InsuranceExamining slave insurance in a world 150 years removed

Recently, in March 2000, Aetna, the nation’s largest health insurer, was criticized for participating in slave insurance 150 years ago. Aetna apologized and expressed its “deep regret” over participating in this “deplorable practice.” THE QUESTION Obviously, slavery was a deplorable …

Negligent Misrepresentation-Part II

Editor’s note: The first portion of this article appeared in our April 10 issue, page 28. The tort of negligent misrepresentation protects commerce from loss-producing, negligently supplied misinformation. It is restricted to the world of business transactions, broadly understood. Actual …

Negligent Misrepresentation-Part I

A primer on how negligence differs from fraud, what constitutes negligence and how Texas law applies For a century and half, or so, tort law was divided into business torts and personal injury. Business torts includes such things as tortuous …

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