Texas § 1701.062 DISCRETIONARY CLAUSES PROHIBITED.

Texas Statutes

§ 1701.062 — DISCRETIONARY CLAUSES PROHIBITED.

Texas § 1701.062

Code INInsurance Code

This text of Texas § 1701.062 (DISCRETIONARY CLAUSES PROHIBITED.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Insurance Code Code Ann. § 1701.062 (2026).

Text

Sec. 1701.062. DISCRETIONARY CLAUSES PROHIBITED.

(a)An insurer may not use a document described by Section 1701.002 in this state if the document contains a discretionary clause.

(b)A discretionary clause includes a provision that:

(1)purports or acts to bind the claimant to, or grant deference in subsequent proceedings to, adverse eligibility or claim decisions or policy interpretations by the insurer; or

(2)specifies:

(A)that a policyholder or other claimant may not contest or appeal a denial of a claim;

(B)that the insurer's interpretation of the terms of a document or decision to deny coverage or the amount of benefits is binding upon a policyholder or other claimant;

(C)that in an appeal, the insurer's decision about or interpretation of the terms of a document or coverage is b

Free access — add to your briefcase to read the full text and ask questions with AI

Sec. 1701.062. DISCRETIONARY CLAUSES PROHIBITED. (a) An insurer may not use a document described by Section 1701.002 in this state if the document contains a discretionary clause.
(b) A discretionary clause includes a provision that:
(1) purports or acts to bind the claimant to, or grant deference in subsequent proceedings to, adverse eligibility or claim decisions or policy interpretations by the insurer; or
(2) specifies:
(A) that a policyholder or other claimant may not contest or appeal a denial of a claim;
(B) that the insurer's interpretation of the terms of a document or decision to deny coverage or the amount of benefits is binding upon a policyholder or other claimant;
(C) that in an appeal, the insurer's decision about or interpretation of the terms of a document or coverage is binding; or
(D) a standard of review in any appeal process that gives deference to the original claim decision or provides standards of interpretation or review that are inconsistent with the laws of this state, including the common law.
SUBCHAPTER C. SANCTIONS; APPLICABILITY OF OTHER LAWS