PJC Business

PJC 102.17

DTPA/I NSURANCE C ODE

PJC 102.17 False Information or Advertising—Insurance (Tex. Ins. Code § 541.052) Making, or directly or indirectly causing to be made, an assertion, represen tation, or statement with respect to insurance that was untrue, deceptive, or misleading [ or ] COMMENT When to use. PJC 102.17 should be used with PJC 102.14 to submit a claim under Tex. Ins. Code §541.052 (formerly Tex. Ins. Code art. 21.21, §4(2)), which prohibits false information and false advertising in the business of insurance. See Royal Globe Insurance Co. v. Bar Consultants, Inc. , 577 S.W.2d 688, 691–92 (Tex. 1979). A claim may also be brought under Tex. Bus. & Com. Code §17.50(a)(4) (DTPA). Use of “or.” If used with other instructions (see PJC 102.16 and 102.18–102.19), PJC 102.17 must be followed by the word or , because a finding of any one of the acts or practices defined in the instructions would support recovery. Use of statutory language. The supreme court has held that jury submission in this type of case should follow the statutory language as closely as possible but may be altered somewhat to conform to the evidence of the case. Spencer v. Eagle Star Insur ance Co. of America , 876 S.W.2d 154, 157 (Tex. 1994); Brown v. American Transfer & Storage Co. , 601 S.W.2d 931, 937 (Tex. 1980); accord Regal Finance Co., Ltd. v. Tex Star Motors, Inc. , 355 S.W.3d 595, 601 (Tex. 2010) (adopting Spencer and Brown in a UCC article 9 case). Material terms, however, should not be omitted or substituted. See Transport Insurance Co. v. Faircloth , 898 S.W.2d 269, 273 (Tex. 1995) (constru ing DTPA section 17.46(b)(23), renumbered in 2001 as DTPA § 17.46(b)(24)). Adapt instruction for other claims. Other kinds of conduct are outlawed by chapter 541, subchapter B, of the Insurance Code, all of which are actionable under DTPA § 17.50(a)(4) and Tex. Ins. Code ch. 541, subch. D, and the instruction should be adapted to include the kind involved in the case. See, e.g. , Tex. Ins. Code § 541.054 (“Boycott, Coercion and Intimidation”). For sample instructions submitting other claims under chapter 541, subchapter B, see PJC 102.16, 102.18, and 102.19. For other conduct prohibited by other subparts of chapter 541, subchapter B, instructions may be drafted using the above instruction or the forms at PJC 102.16 and 102.18– 102.19.

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