Section 416.002 - Exemplary Damages(a) In an action against an insurance carrier for a breach of the duty of good faith and fair dealing, recovery of exemplary damages is limited to the greater of: (1) four times the amount of actual damages; or(b) An action against a governmental entity or unit or an employee of a governmental entity or unit for a breach of the duty of good faith and fair dealing is governed by Chapters 101 and 104, Civil Practice and Remedies Code. Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. 9/1/1993.