2021 Texas Statutes
Insurance Code
Title 5 - Protection of Consumer Interests
Subtitle C - Deceptive, Unfair, and Prohibited Practices
Chapter 544 - Prohibited Discrimination
Subchapter B. Other General Prohibitions Against Discrimination by Insurers
Section 544.054. Judicial Action; Award by Court
Sec. 544.054. JUDICIAL ACTION; AWARD BY COURT. (a) A person who has sustained economic damages as the result of a violation of Section 544.052 may maintain only in a Travis County district court an action against the person who violated that section.
(b) An action under this section must be commenced on or before the second anniversary of:
(1) the date on which the plaintiff was denied insurance or the unfair act occurred; or
(2) the date the plaintiff, in the exercise of reasonable diligence, should have discovered the occurrence of the unfair act.
(c) A plaintiff who prevails in an action under this section may obtain:
(1) the amount of economic damages, court costs, and attorney's fees; and
(2) an order enjoining the violation.
(d) Court costs under Subsection (c) may include any reasonable and necessary expert witness fees.
(e) If the trier of fact finds that the defendant knowingly committed an act prohibited by Section 544.052, the court may award a civil penalty in an amount of not more than $25,000 for each claimant.
(f) The court shall award the defendant reasonable and necessary attorney's fees if the court finds that an action under this section was:
(1) groundless; and
(2) brought in bad faith or for the purpose of harassment.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.013(a), eff. September 1, 2005.
