Tex. Codes » Insurance Code · TITLE 5. PROTECTION OF CONSUMER INTERESTS · SUBTITLE C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES · CHAPTER 542. PROCESSING AND SETTLEMENT OF CLAIMS
Texas Codes

Tex. Ins. Code § 542.057 (2026)

Payment Of Claim

✓ current as of May 2026
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Sec. 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 date 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.

(c) If the insurer is an eligible surplus lines insurer, the insurer shall pay the claim not later than the 20th business day after the notice or the date the act is performed, as applicable.

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

Notes of Decisions
Cited in 27 cases (12 in the last 5 years), 2010–2026 · leading case: in Re United Servs. Auto. Ass'n, 446 S.W.3d 162 (Tex. App. 2014).
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in Re United Servs. Auto. Ass'n, 446 S.W.3d 162 (Tex. App. 2014). · cites it 2× “See Tex. Ins.Code Ann. § 542.057(a) (“[I]f an insurer notifies a claimant .”
In re United Servs. Auto. Ass'n, 521 S.W.3d 920 (Tex. App. 2017). · cites it 2× “See Tex. Ins. Code § 542.057(a) (“[I]f an insurer notifies a claimant .”
Metro Hosp. Partners, Ltd. v. Lexington Ins., 84 F. Supp. 3d 553 (S.D. Tex. 2015). · cites it 2× “Tex. Ins.Code § 542.057(a). An insurer may condition payment on “the performance of an act by the claimant.”
Weiser-Brown Operating Co. v. St. Paul Surplus Lines Ins., 801 F.3d 512 (5th Cir. 2015). “Ins.Code § 542.056(d). If the insurer accepts the claim and “notifies a claimant under [§ ] 542.”
Terry v. Safeco Ins. Co. of Am., 930 F. Supp. 2d 702 (S.D. Tex. 2013). · cites it 2× “Tex. Ins. Code § 542.057(a). An insurer may condition payment on “the performance of an act by the claimant.”
In Re Slavonic Mut. Fire Ins. Ass'n, 308 S.W.3d 556 (Tex. App. 2010). “Tex. Ins. Code Ann. § 542.057 (a) (Vernon 2009).”
Am. S. Ins. v. Buckley, 748 F. Supp. 2d 610 (E.D. Tex. 2010). “Tex. Ins.Code § 542.057(a). An insurer’s failure to comply with the statutorily prescribed time frames will subject the insurer to damages, including interest on the amount of the claim and attorney’s fees.”
Mag-Dolphus, Inc. v. Ohio Cas. Ins., 906 F. Supp. 2d 642 (S.D. Tex. 2012). “20 at 15-16; see Tex. Ins.Code Ann. § 542.057. Plaintiffs agree, however, that Defendant sent a check for $23,145.”
Bilotto v. Allied Prop. & Cas. Ins., 79 F. Supp. 3d 660 (W.D. Tex. 2015). “See Tex. Ins.Code §§ 542.057 (payment of claim); Tex.”
Louis Hinojos v. State Farm Lloyds & Raul Pulido (Tex. 2021). · cites it 3× “While suit was pending—and after the statutory 1 TEX. INS. CODE §§ 542.057–.058; see Barbara Techs.”
Lakeside FBCC, LP v. Everest Indem. Ins. Co. (W.D. Tex. 2020). · cites it 2× “TEX. INS. CODE § 542.057(c); docket no. 49-1 at 48; no.”
FIF Eng'g v. Pac. Employers Ins. Co. (S.D. Tex. 2025). · cites it 2× “” TEX. INS. CODE § 542.057(a). Fif concedes that the complaint misstates the deadline for payment under the Prompt Payment of Claims Act.”
Show all 27 citing cases →
— Tex. Ins. Code § 542.057(a) — 12 cases
in Re United Servs. Auto. Ass'n, 446 S.W.3d 162 (Tex. App. 2014). “See Tex. Ins.Code Ann. § 542.057(a) (“[I]f an insurer notifies a claimant .”
In re United Servs. Auto. Ass'n, 521 S.W.3d 920 (Tex. App. 2017). “See Tex. Ins. Code § 542.057(a) (“[I]f an insurer notifies a claimant .”
Weiser-Brown Operating Co. v. St. Paul Surplus Lines Ins., 801 F.3d 512 (5th Cir. 2015). “Ins.Code § 542.056(d). If the insurer accepts the claim and “notifies a claimant under [§ ] 542.”
Am. S. Ins. v. Buckley, 748 F. Supp. 2d 610 (E.D. Tex. 2010). “Tex. Ins.Code § 542.057(a). An insurer’s failure to comply with the statutorily prescribed time frames will subject the insurer to damages, including interest on the amount of the claim and attorney’s fees.”
Metro Hosp. Partners, Ltd. v. Lexington Ins., 84 F. Supp. 3d 553 (S.D. Tex. 2015). “Tex. Ins.Code § 542.057(a). An insurer may condition payment on “the performance of an act by the claimant.”
— Tex. Ins. Code § 542.057(b) — 4 cases
Metro Hosp. Partners, Ltd. v. Lexington Ins., 84 F. Supp. 3d 553 (S.D. Tex. 2015). “Tex. Ins.Code § 542.057(a). An insurer may condition payment on “the performance of an act by the claimant.”
Terry v. Safeco Ins. Co. of Am., 930 F. Supp. 2d 702 (S.D. Tex. 2013). “Tex. Ins. Code § 542.057(a). An insurer may condition payment on “the performance of an act by the claimant.”
Mitchell v. Praetorian Ins. Co. (S.D. Tex. 2024).
Terry v. Safeco Ins. Co. of Am., 972 F. Supp. 2d 965 (S.D. Tex. 2013).
— Tex. Ins. Code § 542.057(c) — 1 case
Lakeside FBCC, LP v. Everest Indem. Ins. Co. (W.D. Tex. 2020). “TEX. INS. CODE § 542.057(c); docket no. 49-1 at 48; no.”
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