Sec. 542.058. DELAY IN PAYMENT OF CLAIM. (a) Except as otherwise 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.
(b) Subsection (a) does not apply in a case in which it is found as a result of arbitration or litigation that a claim received by an insurer is invalid and should not be paid by the insurer.
(c) A life insurer that receives notice of an adverse, bona fide claim to all or part of the proceeds of the policy before the applicable payment deadline under Subsection (a) shall pay the claim or properly file an interpleader action and tender the benefits into the registry of the court not later than the 90th day after the date the insurer receives all items, statements, and forms reasonably requested and required under Section 542.055. A life insurer that delays payment of the claim or the filing of an interpleader and tender of policy proceeds for more than 90 days shall pay damages and other items as provided by Section 542.060 until the claim is paid or an interpleader is properly filed.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 833 (S.B. 1812), Sec. 1, eff. June 19, 2009.
Notes of Decisions
Prudential Ins. Co. of Am. v. Durante, 443 S.W.3d 499 (Tex. App. 2014).
· cites it 3× “Tex. Ins.Code Ann. § 542.058(a). If an insurer is liable for a claim that is not in compliance with the Prompt Payment subchapter, the insurer is liable for interest on the claim of 18 percent a year as damages, and reasonable attorney fees.”
Nat'l Sec. Fire & Cas. Co. v. Hurst, 523 S.W.3d 840 (Tex. App. 2017).
“Tex. Ins. Code § 542.058. As this court has recognized, full and timely payment- of an appraisal award under the policy precludes an award of penalties under the Insurance Code’s prompt payment provisions as a matter of law.”
State Farm Life Ins. Comp v. Troy Jonas, 775 F.3d 867 (7th Cir. 2014).
· cites it 2× “Texas law requires an insurer to pay within 60 days of receiving a claim, Tex. Ins.Code § 542.058(a), and provides for “damages” if payment is delayed.”
Lee v. Catlin Specialty Ins. Co., 766 F. Supp. 2d 812 (S.D. Tex. 2011).
· cites it 2× “056; and/or by (c) Delaying payment of the Claim following [Catlin’s] receipt of all items, statements, and forms reasonably requested and required, longer than the amount of time provided by Tex. Ins. Code § 542.058. 72 1. Section 5J/.”
Hall Arts Ctr. Off., LLC v. Hanover Ins. Co., 327 F. Supp. 3d 979 (N.D. Tex. 2018).
“Tex. Ins. Code Ann. § 542.058 provides: [e]xcept as otherwise provided, if an insurer, after receiving all items, statements, and forms reasonably requested and required under Section 542.”
— Tex. Ins. Code § 542.058(a) — 38 cases
Prudential Ins. Co. of Am. v. Durante, 443 S.W.3d 499 (Tex. App. 2014).
“Tex. Ins.Code Ann. § 542.058(a). If an insurer is liable for a claim that is not in compliance with the Prompt Payment subchapter, the insurer is liable for interest on the claim of 18 percent a year as damages, and reasonable attorney fees.”
— Tex. Ins. Code § 542.058(b) — 4 cases
— Tex. Ins. Code § 542.058(c) — 7 cases
Prudential Ins. Co. of Am. v. Durante, 443 S.W.3d 499 (Tex. App. 2014).
“Tex. Ins.Code Ann. § 542.058(a). If an insurer is liable for a claim that is not in compliance with the Prompt Payment subchapter, the insurer is liable for interest on the claim of 18 percent a year as damages, and reasonable attorney fees.”
State Farm Life Ins. Comp v. Troy Jonas, 775 F.3d 867 (7th Cir. 2014).
“Texas law requires an insurer to pay within 60 days of receiving a claim, Tex. Ins.Code § 542.058(a), and provides for “damages” if payment is delayed.”
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