Texas Attorney General Ken Paxton has opened an investigation into Superior Insurance for allegedly using private investigators to spy on lawmakers, journalists, and private citizens with pending insurance claims. The company's CEO admitted to these actions at a legislative hearing, citing concerns about blackmail and leveraging information to secure state contracts and avoid paying legitimate claims, particularly for medical bills.
In-house legal teams should review vendor agreements with private investigators for surveillance prohibitions, customer insurance policies for claims handling and data sharing clauses, and state contracts for compliance terms. Specific clauses to examine include data sharing restrictions, surveillance provisions, claims handling procedures, whistleblower protections, and ethics compliance terms. Changes might involve adding explicit bans on illegal surveillance, requiring transparency in third-party investigations, and enhancing oversight to prevent claim denials and blackmail.
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Superior Insurance
Industry
InsuranceTexas Attorney General Ken Paxton issued a consumer alert warning Texans about scams, fraudulent charities, and illegal price gouging related to severe flooding. The guidance provides resources for verifying charities and reporting suspected fraud or price gouging to the AG's office.
$150.0M
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$45.0M
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$13.0M
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