Stowers Doctrine

{
  "id": "MLC-T-INS-003201",
  "term": "Stowers Doctrine",
  "field": "Insurance and risk management",
  "definition": "A legal doctrine, originating in Texas, that imposes a duty on liability insurers to accept reasonable settlement offers within policy limits when liability is clear and damages are likely to exceed those limits. Failure to do so can expose the insurer to liability for the entire judgment, even if it exceeds the policy limits. This protects insureds from bad faith claims handling.",
  "url": "https://mlchart.com/terminology/insurance/stowers-doctrine/"
}