together with reasonable attorney fees as may be determined by the trier of fact. Such attorney fees shall be taxed as part of the costs in the case. Tex.Ins.Code Ann. art. 21.55, § 6 (Vernon Supp.1995). Although the damages and attorney’s fees provided by the article do not arise from the insurance contract, they are recoverable for the insurer’s failure to timely pay any loss for which it may be liable under the contract. Thus, when relator Doris Lusk alleged Mid-Century failed to timely pay her claim and pleaded for damages and attorney’s fees provided by article 21.55, the entire liability of Mid-Century, both on the insurance policy and under article 21.55, was put in issue as one cause of action. Cf. Great American Reserve Insurance Co. v. Britton, 406 S.W.2d 901, 907 (Tex.1966) (<HOLDING>). This holding is consistent with the automatic
holding that a claim against an insurer for vexatious refusal to pay cannot be maintained where the court finds that the insurer has no duty to defend under the policy holding that when the insurer takes the position that the policy does not cover the complaint the insurer must 1 defend the suit under a reservation of rights or 2 seek a declaratory judgment that there is no coverage if the insurer fails to take either of these actions it will be estopped from later raising policy defenses to coverage holding that an insurer which insures a tortfeasor under a liability policy has no obligation of good faith and fair dealing to an injured third party even where the injured third party also carries a separate policy with the insurer holding that an insurer can deny benefits based on late notice by the insured only when the insurer is prejudiced by the delay holding that when an insurer files suit to cancel a policy the entire liability of the insurer both on the policy and under the statute is put in issue