If you believe you have been subjected to fraud by someone masquerading as an insurance company, the Texas Deceptive Trade Practices Act (DPTA) is supposedly in place to protect you. However, the language on the Attorney General’s website states that you only have a right to sue for damages caused by any illegal practices “covered under the DPTA.” So how does the DPTA work when insurance fraud comes into the picture?
The fine print of the DPTA
The language of the DPTA allows for the prosecution of anyone who is not a licensed insurance agent or provider, which means that you can most likely sue someone under the DPTA if they did not actually have a license to sell you insurance. However, if you intend to sue a licensed insurance agent or provider under the DPTA, things get more complicated.
The DPTA states that an action by a licensed insurance agent or provider may only be prosecuted if the State Board of Insurance requests it. Even the consumer protection division may not request legal action unless they are prompted by the State Board of Insurance.
This means that if you do believe you have good reason to sue an insurance company through the DPTA, then you must first go through the State Board of Insurance. The State Board of Insurance may decide to request a county or district attorney to take legal action if you can show them that there has been a violation of Insurance Code, but that is entirely their decision to make.
The above article explains some of the issues with suing under the DPTA, but is purely informative in nature and not legal advice.