Pan American Life Insurance Co. v. Erbauer Construction Corp.

ON MOTION FOR REHEARING

COHEN, Justice.

Appellant’s motion for rehearing is granted, our opinion of December 29, 1988, is withdrawn, and the following is substituted.

This is an appeal from a judgment for damages to an employer because of an insurer’s wrongful denial of an employee’s group health insurance claim. Appellee, Erbauer Construction Corporation. (“Er-bauer”), sued Pan American Life Insurance *149Co. (“Pan Am”), alleging bad faith settlement practices and violations of the Deceptive Trade Practices Act (“DTPA”) and the Insurance Code. After a nonjury trial, the court awarded $1.2 million…