Opinions related to the Texas Prompt Payment of Claims Act and in particular the 18% penalty found in Section 542.060, have differed as to whether or not the 18% damages must be exemplary damages and not actual damage. In that regard; First, it is not clear at all that the…
Respected writers, Robert E. Keeton and Alan I. Widiss, argue that damages under the Texas Prompt Payment of Claims Act, Section 542.060(a), have a purpose of providing compensation to the insured. They write: The statutory provisions establishing remedies for the late payment or nonpayment of insurance claims are often regarded,…
Insurance lawyers who publish books, such as Robert E. Keeton and Alan I. Widiss, who publish Keeton and Widiss’ Basic Text on Insurance Law, have detailed the purposes of the 18% penalty found in the Texas Prompt Payment of Claims Act. Imposing legislatively prescribed remedies whenever an insurer unsuccessfully contests…
The law in Texas regulating the timely payment of claims is the Texas Prompt Payment of Claims Act. It starts in the Texas Insurance Code, Section 542.051. The 18% penalty is found in Section 542.060. One commentator in, Couch on Insurance, has recognized that statutes which impose penalties for denying…
Under the Texas Prompt Payment of Claims Act, what is subject to the 18% penalty? This will be a multi blog topic. Courts are split on the issue of whether the 18% award is subject to prejudgment interest. See the difference in 1995, Fort Worth Court of Appeals opinion, Marineau…
The Texas Prompt Payment of Claims Act is found in the Texas Insurance Code, Section 542.051. Under Section 542.060, a violation of the Prompt Payment of Claims Act allows recovery of an 18 percent interest on damages. The question then becomes does the 18 percent apply when there is trebling…
When an insurance company makes an unjustified delay in paying a claim the Texas Prompt Payment of Claims Act allows interest on the amount of the claim at the rate of 18 percent a year as damages. This statute is found in the Texas Insurance Code, Section 542.060(a). But the…
How do you calculate the beginning date and end date for violation of the Texas Prompt Payment of Claims Act? The start date was calculated in the previous post. Here is a discussion on the end date for calculation. The statute does not say when the penalty stops accruing. No…
When does the time to start calculating the time a payment is due under an insurance policy claim? Good question but not an easy answer. The penalty for violation of the Texas Prompt Payment of Claims Act is an 18% penalty on the amount due and owing on the claim…
When an insurance company delays in paying a claim, the claimant may be entitled to relief under the Texas Prompt Payment of Claims Act. The Texas Prompt Payment of Claims Act, Section 542.060 provides that (1) if an insurer that is liable for a claim under an insurance policy is…