Hinojos v. State Farm Lloyds and Pulido

In this brief UP endeavors to change the use of Texas’ longstanding reasonableness exception to bar insured’s Texas Prompt Payment of Claims Act (TPPCA) entitlements. This reasonableness exception provides insurers with a loophole opportunity to low-ball the insured, take a gamble on a policyholder paying for appraisal out of their own pocket, and pay the difference if they lose the appraisal without any further pecuniary consequence.

UP argues that:

• TPPCA has no basis under Texas law;
• The “reasonableness exception is problematic and continues to be in federal district court decisions”; and
• The continued application of the reasonableness exception is not viable.