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Accepting an Insurance Payment Without a Waiver in Texas

February 20, 2025|Personal Injury Law

 

Delta Air Lines recently offered $30,000 payments to passengers involved in a crash-landing incident in Toronto. Legal experts emphasize that accepting this payment does not prevent passengers from pursuing additional legal action against the airline.

Alan Tan, an aviation law professor at the National University of Singapore, clarified that passengers still retain the right to sue even after accepting the compensation. This approach allows affected individuals to receive immediate financial assistance without waiving their legal rights. However, passengers should carefully consider their options and consult an attorney before making any decisions.


https://www.yahoo.com/news/legal-experts-weigh-deltas-30-094645024.html?ncid=facebook_yahoonewsf_akfmevaatca&fbclid=IwY2xjawIkTRtleHRuA2FlbQIxMQABHetZP8YYU1kaRyu546wtAPe_smifyUO-_IwWRNBGrrKgGjf_JZg_adXSsg_aem_rnletGa1861Cd82mUUbSkQ  

This is something that you may need to consider in your own personal injury case.

Accepting an Insurance Payment Without a Waiver in Texas: What It Means for Your Legal Rights

In Texas, accepting payment from an insurance company in a personal injury case without signing a waiver or release has specific legal implications:

1. No Signed Release = No Automatic Settlement

  • Under Texas law, simply accepting a payment does not automatically waive your right to seek additional compensation unless there is a clear agreement that the payment was a full and final settlement.
  • Insurance companies typically require claimants to sign a release of liability before issuing a settlement check to prevent further claims.
  • If you did not sign a release, you may still have the right to pursue additional damages.

2. Accord and Satisfaction Defense (Texas Law)

  • Texas courts recognize the legal doctrine of accord and satisfaction, meaning if you accept a payment that was clearly intended as full and final payment, the insurer may argue that you waived any further claims.
  • However, for this defense to be valid, the payment must have been:
    • Made in good faith;
    • Accompanied by a clear statement (e.g., a check labeled "final settlement"); and
    • Accepted under circumstances that suggest you knew it was meant to be a full resolution.

Example:

  • If the insurance company issued a check labeled “Full and Final Settlement”, and you cashed it, they may argue you settled the claim—even without a signed release.
  • However, if there was no such wording and you did not sign a release, you may argue the payment was a partial settlement, leaving room for additional claims.

3. Texas Insurance Code and Bad Faith Claims

  • Texas Insurance Code § 541.060 prohibits insurance companies from misrepresenting the effect of a settlement.
  • If the insurer misled you into thinking the payment was only partial (when they intended it as a full settlement), you might have grounds for a bad faith claim.
  • If you believe an insurer acted in bad faith, you may be able to sue for additional damages, including potential punitive damages.

4. Potential for Further Litigation

  • If you accepted the payment without a signed release and the insurance company tries to claim the case is settled, you can dispute this in court.
  • A judge would look at whether:
    • There was a clear agreement that the payment was a full settlement.
    • The payment reasonably covered all your damages.
    • You were coerced or misled into accepting it.

5. Texas Supreme Court Precedents

  • Texas courts typically enforce settlements that are clearly agreed upon, but they will not assume a claim is waived unless a release or clear evidence of intent exists.
  • Case Example: If there was no written agreement, and you can show you expected further negotiations, the court may allow you to continue pursuing damages.

Bottom Line for Texas:

✅ If you accepted payment but did not sign a waiver, you may still have a legal right to sue for additional damages.
⚠️ If the insurer can prove you accepted the payment as a full settlement (e.g., via check wording, emails, or verbal agreement), they may argue "accord and satisfaction."
🛑 If you feel the insurer is wrongfully denying further claims, consider consulting a Texas personal injury attorney.

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