Court Opinion

ID: 9668651
Source: CourtListenerOpinion
Date Created: 2023-08-24 02:20:41.055437+00
Date Added: 2024-06-11T18:15:46.831605
License: Public Domain

MR. JUSTICE GREENHILL,
joined by JUSTICE CULVER, concurring.
I agree that the trial de novo provisions of the statute are constitutional. But I disagree that the policy itself should be struck down because of oral representations or misrepresentations made by agents in connection with the selling of the policy. Any policy of insurance is capable of being misrepresented. And as I read it, this policy itself contains nothing which is illegal, which of itself is misleading or fraudulent, or which peculiarly lends itself to misrepresentation.
The Legislature has clothed the Board of Insurance with broad power in Article 21.21 of the Insurance Code to deal with and stop misrepresentations and false advertising made in connection with the sale of insurance policies. The Board is also given the power to call before it any person who is accused of deceptive acts or practices or unfair methods of competition in the business of insurance. It has authority to issue cease and desist orders to stop the objectionable practices. To me, this would have been the proper approach to the objectionable practices in this case.
*31As originally introduced in the Legislature, Senate Bill 438, which became Article 3.42 of the Insurance Code, authorized the Board to disapprove a policy form “(d) If the purchase of such policy is being solicited by deceptive advertising.” This authority was deleted before enactment. This is evidence of legislative intent that misleading advertising and practices outside of the policy should be separately dealt with, and that the policy should be judged by its own terms.
I agree that misleading and deceptive practices should be stopped. I disagree only in the manner in which they should be stopped.