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Bad-faith litigation has long been a contentious — and big-dollar — issue for insurers.

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Gina Hadley sits on a damaged section of her destroyed home in the aftermath of Hurricane Ike Wednesday, Sept. 24, 2008 in Galveston, Texas. (AP Photo/David J. Phillip)

This story is reprinted with permission from FC&&S Legal, the industry’s only comprehensive digital resource designed for insurance coverage law professionals. Visit the website to subscribe.

The Texas Supreme Court has issued a decision setting forth five rules about statutory bad faith under the state’s Insurance Code.

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