Insurance companies are notorious for delaying payment and dragging a claim out and the result being that many people get frustrated and give up or walk away. What the person who was wronged by the insurance company does to “get back” is change insurance companies.
Insurance companies are highly regulated and have lots of rules they have to operate under. What is important to remember is that the rules are designed to make sure they are not taking advantage of you.
It is hard to know the rules as can be seen by reading the ones above and noting that they refer you to more rules and if you go to those rules you are referred further. Beyond that, you still have to know how the rules apply to different situations and how the courts have interpreted the rules.
The next important thing to remember is that these rules exist and can be enforced when you are dealing with a Texas Insurance Law Attorney who knows how to enforce them against an insurance company. These same rules allow for recovery of court costs, attorneys fees, and other penaltys and interest. Don’t let an insurance company get away with doing you wrong!
Texas Insurance Code Section 542.057. Payment of Claim
(a) Except as otherwise provided by this section, if an insurer notifies a claimant under Section 542.056 that the insurer will pay a claim or part of a claim, the insurer shall pay the claim not later than the fifth business day after the notice is made.
(b) If payment of the claim or part of the claim is conditioned on the performance of an act by the claimant, the insurer shall pay the claim not later than the fifth business day after the date the act is performed.
542.058. Delay in Payment of Claim
(a) Except as other wise provided, if an insurer, after receiving all items, statements, and forms reasonably requested and required under Section 542.055, delays payment of the claim for a period exceeding the period specified by other applicable statutes or, if other statutes do not specify a period, for more than 60 days, the insurer shall pay damages and other items as provided by Section 542.060.