The Texas Prompt Payment Act
Insurance Companies Are Obligated to Make Timely Payments
If you are entitled to money from an insurance claim, you should expect to receive the money as soon as possible.
To remove the possibility of late payments or underpayments that do not reflect the full amount that you deserve, the state of Texas has created the Prompt Payment Act of 2003, which is now written into the Texas Insurance Code. This code mandates that all insurers must be diligent to pay out claims within 60 days of receiving all requested items, forms, and statements. Insurers who fail in this responsibility may have to pay your insurance attorney's fees or may also have to cover the value of the claim and pay set penalties.
Every claim is different, but insurers are required to be consistent when it to comes to their job. If you have filed a claim and received an amount of compensation, then you deserve to have that money as soon as possible. If you do not receive your payment, then the insurer may need to pay penalty interest to you and also cover your attorney's fees. The Texas Insurance Law also states that if an insurer denies a claim and later an attorney can prove that that denial was invalid, then the insurer may be still held liable for an overdue payment.
If your case has been delayed in any way, our attorneys can help you take a stand. Call us now at (888) 493-1629.