Union Bankers Insurance Company, Petitioner v. Thomas D. Shelton and Ann Shelton, Respondents

Summary

The Texas Supreme Court held that an insurer must prove the insured's intent to deceive to cancel an individual health insurance policy within two years based on a misrepresentation, and that a cause of action for breach of the duty of good faith and fair dealing exists when an insurer cancels a policy without a reasonable basis. The Court affirmed the Court of Appeals judgment and remanded for a new trial on the good‑faith issue.