Filing an insurance claim can be stressful. Once the process is complete, you should be able to rely on your insurance company to pay your claim promptly. If it does not, you may be unable to repair or rebuild your property and start getting your life back in order. The Texas Prompt Payment of Claims Act (TPPCA) prohibits your insurance company from unwarranted delays.
You do not have to understand all the details and nuances of the Texas Prompt Payment of Claims Act to benefit from it. A Corpus Christi insurance claims lawyer can clarify its advantages. They can also negotiate with your insurance company, fight for the compensation you need and deserve, and protect you from bad-faith insurance practices. Law firms in your area may offer a free initial consultation to learn more about your situation.
What Are the Specific Details of the Texas Prompt Payment of Claims Act?
Insurance companies that intentionally delay payment of valid claims violate the law and could face hefty penalties. Texas requires insurance providers to act promptly when handling consumer claims. For example:
- Insurance companies generally have 15 days to acknowledge receipt of claims, begin investigating, and request more information if needed.
- Once an insurance carrier has received a claim and all necessary information and evidence, it has 15 business days to approve the claim, deny payment, or request more time to investigate.
- The insurance company has up to five days to send payment after approving a claim.
Timelines and payment deadlines can vary based on insurance policy type and possible extensions. Property insurance claims following a weather-related catastrophe may also require additional time for processing. The best way to understand how the TPPCA applies to your claim is to let an attorney provide clarity and guidance.
To take legal action against the insurance company, you must first ensure you have met your obligations by filing your claim on time. You should also ensure you have provided all required information and filed a comprehensive claim with proof of damage.
We have offices in Houston, Corpus Christi, and Victoria; and will travel to any corner of Texas if we are capable of preventing an injustice.
What Types of Claims Does the Texas Prompt Pay Act Protect?
Individuals and businesses file insurance claims for various reasons. Knowing the insurance company must pay your claim, once approved, without unwarranted delays can relieve stress and limit frustration after an already trying event.
The TPPCA applies to varying insurance providers throughout Texas, including those offering:
- Homeowners insurance
- Commercial property insurance
- Life insurance
- Health insurance
- Fire insurance
- Casualty insurance
How Are Insurance Companies Penalized for Failure to Pay Claims Promptly?
All insurance providers in Texas must comply with the Texas Prompt Payment of Claims Act. If your insurance provider approved your claim but you are struggling to collect a timely payment, you could have the right to additional compensation from the insurance company.
If an insurance company unduly or unfairly delays paying your claim, the state allows you to take the following actions:
- Pursue compensation, including the original claim amount
- Pursue interest on that amount of up to 18% per annum
- Pursue recovery of reasonable and necessary attorney’s fees
You can file a claim against the insurance company to recover these damages. Claims like these can be complex, and interest can accrue quickly. Rather than go it alone, a local insurance claims attorney can help you file the appropriate claim.
What Other Acts Constitute Bad Faith Insurance Tactics in Texas?
Sadly, not all insurance companies in the state handle claims honestly. Some might use underhanded or illegal practices, called acts of bad faith, which can include:
- Falsifying the terms of your policy
- Delaying notification of a claim denial
- Manufacturing unwarranted delays
- Not investigating your claim promptly
- Requesting superfluous financial information
Texas Insurance Code § 541.060 further describes insurance bad faith tactics. If any of these tactics affected your claim, a bad faith insurance lawyer can help you take action against the insurer and fight for fair compensation.
Representing the injured in all areas of Texas that extends back over 40 years
Is it Worth Hiring a Lawyer to Enforce the Texas Prompt Payment of Claims Act?
You do not have to take on a huge insurance company without legal representation. An insurance claims lawyer can manage all the moving parts of a TPPCA violation. They can acquaint you with any extensions the insurer has and how they might affect your claim. In addition, on your behalf, they will:
- Examine your initial claim in detail
- Gather evidence that the insurer acted in bad faith
- Assess the monetary value of your claim
- Fight for a fair financial recovery
A lawyer can also clarify your responsibilities to the insurer during the claims process. With their guidance and direction, you can file a complete and accurate claim with the insurance company, requesting compensation and interest for unwarranted payment delays and other acts of bad faith.
How Much Does an Initial TPPCA Claim Consultation Cost?
A late payment can lead to stress and anxiety for insurance claimants. In most cases, it costs nothing to consult with a team member at a law firm that handles insurance claims. They will listen to your version of events regarding how the insurance provider handled your claim and describe your rights.
Your attorney can also describe the actions they will take on your behalf to hold the insurance company accountable for their TPPCA violations and other acts of bad faith. Insurance attorneys often accept claims on a contingency fee basis, meaning they only receive financial compensation when you do. If your TPPCA claim does not result in a financial award, you will not owe any attorney fees.
You need a skilled advocate to protect your legal rights and present your claim in such a way as to maximize your recovery.
Contact Our Insurance Claims Team if Your Insurer Is Delaying Payment
The Texas Prompt Payment of Claims Act (Texas Insurance Code § 542, Subchapter B) entitles you to prompt compensation so you can start putting your life back together. If you filed an insurance claim and your insurance company is delaying the payment of your claim without cause, our law firm can help you take legal action.
Learn how hard our client-focused law firm will work to ensure your insurance company treats you fairly. Contact our consultation team at Carrigan & Anderson, PLLC, to get started today.
At Carrigan & Anderson, PLLC we can talk to you about your options and rights.
