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

Summary

The Texas Supreme Court held that an insured’s intent to deceive must be proved for an insurer to cancel a health policy within two years on the basis of 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 appellate court’s judgment and remanded for a new trial on the good‑faith issue.