Questions & answers · Disability insurance
Do I need a lawyer for my disability insurance claim for an illness or injury, and is this bad faith?
Disability insuranceLawyer / bad faithTexasChecked Nov 6, 2026
From K.Actuary, founded by Sangmin Kwon, ASA · sources checked 2026-11-06 · Source: Texas Insurance Code · Chapter 541 · § 541.060(a) (Unfair Settlement Practices) View original ↗
In short
- The same unfair law covers disability claims too.
- If the insurer knew it was wrong, a court can triple damages, plus fees.
- Send 61 days' notice before you sue. A groundless, bad-faith suit can cost you the insurer's fees instead.
What this means
This law covers any claim by an insured person, including disability [1]. Section 541.060 lists the specific acts that count as unfair. If you win, you can recover your actual damages, court costs, and attorney's fees. If the insurer knowingly broke the law, a court may award up to three times your actual damages [4].
Before you sue, you must give 61 days' written notice [2]. If your case turns out to be groundless and brought in bad faith or to harass the insurer, the court can instead make you pay the insurer's costs and fees [3]. These sources don't say whether you need a lawyer — that depends on your own case.
Your next step
Send the 61-day pre-suit notice under § 541.154 before filing if you intend to sue [2].
Check it yourself
Read § 541.060(a) for the full list of nine unfair settlement practices.
Where this comes from (4)
[1] Texas Insurance Code · Chapter 541 · § 541.060(a) (Unfair Settlement Practices) · checked 2026-11-06
It is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to engage in the following unfair settlement practices with respect to a claim by an insured or beneficiary
[2] Texas Insurance Code · Chapter 541 · § 541.154(a) (Prior Notice of Action) · checked 2026-11-06
A person seeking damages in an action against another person under this subchapter must provide written notice to the other person not later than the 61st day before the date the action is filed.
[3] Texas Insurance Code · Chapter 541 · § 541.153 (Frivolous Action) · checked 2026-11-06
A court shall award to the defendant court costs and reasonable and necessary attorney's fees if the court finds that an action under this subchapter is groundless and brought in bad faith or brought for the purpose of harassment.
[4] Texas Insurance Code · Chapter 541 · § 541.152(a)-(b) (Damages, Attorney's Fees, and Other Relief) · checked 2026-11-06
A plaintiff who prevails in an action under this subchapter may obtain: (1) the amount of actual damages, plus court costs and reasonable and necessary attorney's fees … (b) … on a finding by the trier of fact that the defendant knowingly committed the act complained of, the trier of fact may award an amount not to exceed three times the amount of actual damages.
How we found this
We matched your question to 4 official sources, quoted the exact lines, and re-checked each quote against its source on 2026-11-06.
What we don’t know yet
Your own plan or notice may say something different. If your letter cites another rule, send it and we will look again.
Every answer is checked against the official rule it quotes.
Information only — not legal advice. Your plan, insurer or agency decides.
This answer quotes the official sources listed above, with the date we checked them. Your own policy, notice and state rules control. We are not your lawyer or your insurer. We don’t file, argue or negotiate claims for you — you send any letter or form yourself.
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