The Stowers doctrine in Texas imposes a duty on insurers to settle third party claims against their insured under circumstances that would cause a reasonably prudent uninsured to settle. Sample Stowers Demand Letter The theory behind the rule is that it is necessary in order to prevent insurers from “rolling the dice” with the insured’s money.  An example helps explain this concept.  Consider a situation where an insured with $30,000 limits runs a stop sign and causes the death of an innocent child. Under any reasonable evaluation, the insured faces liability exposure greatly in excess the policy limits.  But if the insurance company faces no exposure in excess of the $30,0000 limit, what incentive does it have to tender the[…]