The State of Texas has stated that insurance companies owe "fiduciary-like" duties to their policyholders. The reasoning is that since insurance companies have such a superior bargaining position over the general insuring public, and issue policies on a take-it-or-leave-it basis (adhesion contracts), they should be held to act as a fiduciary when dealing with policyholders. However, many courts do not see it that way.
If you think you understand how "your insurance company" should treat you...think again. Even the courts across the land are on opposite sides of the debate. The following cases illustrate the controversy surrounding this most basic issue--the relationship between the insurance company and the policyholder: See full article.
