LABOR CODE
CHAPTER 416. ACTIONS AGAINST INSURANCE CARRIER FOR BREACH OF DUTY
§ 416.001. CERTAIN CAUSES OF ACTION PRECLUDED. An
action taken by an insurance carrier under an order of the
commission 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, § 1, eff. Sept. 1, 1993.
§ 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, § 1, eff. Sept. 1, 1993.