What is the Estoppel Law?

Full question:

The insurance company has done all the contract work to from 2001 to 2005 without any request from me and has paid out about $300,000.00. The problem has not been resolved. The insurance limit is $1,000,000.00 This is about an enviromental problem. In March 2005 they told me that they were not going to pay anymore. I have never had input into their work on this project and had some difficulty in even obtaining reports filed in my name by their consultant. Is this covered under Estoppel Law?

Category: Courts
Subcategory: Legal Definitions
Date: 04/07/2025
State: Texas

Answer:

Please see the information at the following links:

http://definitions.uslegal.com/e/estoppel/

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What is estoppel in insurance law?

Estoppel in insurance law is a legal principle that prevents an insurance company from denying a claim if their previous actions led the policyholder to reasonably rely on those actions. For example, if an insurer has consistently paid claims and then suddenly stops, the policyholder may argue that they relied on the insurer's past behavior. This principle aims to promote fairness and prevent unjust outcomes.

Can an insurance company refuse to pay after making prior payments?

Yes, an insurance company can refuse to pay if there are valid reasons based on the policy terms or if the claim is not covered. However, if the insurer has led the policyholder to believe that payments would continue, estoppel may apply, potentially preventing the insurer from denying the claim. It's essential to review the specific policy and any communications from the insurer.

What should I do if my insurance company stops payments?

If your insurance company stops payments, first review your policy to understand the coverage and terms. Document all communications with the insurer and gather evidence of prior payments. You may want to contact the insurer for clarification. If necessary, consult with a legal professional to explore options, including potential claims under estoppel.

How can I prove reliance for estoppel?

To prove reliance for estoppel, you need to show that you reasonably relied on the insurance company's previous actions or statements. This can include evidence of their consistent payments and any communications that led you to believe payments would continue. Documentation, such as emails or letters, can strengthen your case. Legal advice may also help clarify your position.