Underwriters Life Insurance Co. v. Cobb
The Underwriters Life Insurance Company appealed a judgment awarded to Terrell and Edith Cobb following Underwriters' refusal to pay Edith Cobb's medical insurance claim. The jury found Underwriters liable for breach of contract, bad faith, negligence, and violations of the Texas Insurance Code and the Deceptive Trade Practices Act. The lawsuit stemmed from an unlicensed agent's failure to accurately record Mrs. Cobb's medical history on her insurance application, despite the Cobbs providing truthful information. The appellate court affirmed the jury's findings on liability but ordered a remittitur of $500,000.00 from the $1,000,000.00 punitive damages award, finding it excessive. The case was remanded for a new trial unless the remittitur was filed.