Texas Codes

Tex. Ins. Code § 542.054 (2026)

Liberal Construction

✓ current as of May 2026
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Sec. 542.054. LIBERAL CONSTRUCTION. This subchapter shall be liberally construed to promote the prompt payment of insurance claims.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.

Notes of Decisions
Cited in 33 cases (14 in the last 5 years), 2007–2025 · leading case: State Farm Life Ins. Co. v. Martinez, 216 S.W.3d 799 (Tex. 2007).
State Farm Life Ins. Co. v. Martinez, 216 S.W.3d 799 (Tex. 2007). · cites it 4× “”) (current version at Tex. Ins.Code § 542.054). 14 . See, e.g., Act approved May 2, 1874, 14th Leg.”
Lamar Homes, Inc. v. Mid-Continent Cas. Co., 242 S.W.3d 1 (Tex. 2007). “” Tex. Ins.Code § 542.054; see also State Farm Life Ins.”
Lyda Swinerton Builders, Inc. v. Okla. Sur. Co., 903 F.3d 435 (5th Cir. 2018). “" TEX. INS. CODE § 542.054 (emphasis added).”
Weiser-Brown Operating Co. v. St. Paul Surplus Lines Ins., 801 F.3d 512 (5th Cir. 2015). “055, entitled “Receipt of Notice of Claim,” provides that within fifteen days of receiving notice of a claim, the insurer must acknowledge receipt of the claim, commence an investigation, and request “all items, statements, and forms that the insurer reasonably believes, at that…”
Cox Operating, L.L.C. v. St. Paul Surplus Lines Ins., 795 F.3d 496 (5th Cir. 2015). · cites it 2× “In order “to promote the prompt payment of insurance claims,” see Tex. Ins. Code § 542.054, the Act provides for a series of deadlines to which insurers must adhere at each stage of the claims-handling process.”
Nunn v. State Farm Mut. Auto. Ins., 729 F. Supp. 2d 801 (N.D. Tex. 2010). “In particular, he contends that State Farm did not request his statement or EUO or information relating to the purchase of the vehicle.”
Nautilus Ins. v. Int'l House of Pancakes, Inc., 622 F. Supp. 2d 470 (S.D. Tex. 2009). · cites it 2× “” Tex. Ins.Code § 542.054. Nautilus argues that this language makes § 542.”
Gusma Props., L.P. v. Travelers Lloyds Ins. Co., 514 S.W.3d 319 (Tex. App. 2016). “See Tex. Ins. Code § 542.054 (“This chapter shall be liberally construed to promote the prompt payment of insurance claims.”
Mag-Dolphus, Inc. v. Ohio Cas. Ins., 906 F. Supp. 2d 642 (S.D. Tex. 2012). “Tex. Ins.Code Ann. § 542.054. If an insurer delays payment of a claim after receiving “all items, statements, and forms reasonably requested and required” for more than sixty days, the insurer “shall pay damages and other items as provided for in § 542.”
Lyda Swinerton Builders, Inc. v. Oklahoma Sur. Co., 877 F.3d 600 (5th Cir. 2017). “” Tex. Ins. Code § 542.054 (emphasis added).”
Lamar Homes, Inc. v. Mid-Continent Cas. Co., 239 S.W.3d 236 (Tex. 2007). “" TEX. INS.CODE § 542.054; see also State Farm Life Ins.”
Louis Hinojos v. State Farm Lloyds & Raul Pulido (Tex. 2021). · cites it 2× “2 When an insurer receives a claim, it has fifteen days to acknowledge its receipt, begin an investigation, and request from the claimant all “items, statements, and forms” that the insurer reasonably believes are necessary to evaluate the claim.”
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