Texas Codes

Tex. Ins. Code § 542.058 (2026)

Delay In Payment Of Claim

✓ current as of May 2026
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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
Cited in 106 cases (49 in the last 5 years), 2007–2026 · leading case: Candelaria Garcia v. State Farm Lloyds & Sylvia Garza, 514 S.W.3d 257 (Tex. App. 2016).
Candelaria Garcia v. State Farm Lloyds & Sylvia Garza, 514 S.W.3d 257 (Tex. App. 2016). · cites it 2× “Tex. Ins. Code Ann. § 542.058 (a) (West Supp.”
Weiser-Brown Operating Co. v. St. Paul Surplus Lines Ins., 801 F.3d 512 (5th Cir. 2015). · cites it 2× “that the insurer reason *525 ably believes, at that time, will be required from the claimant”); see also Tex. Ins. Code § 542.058 (giving an insurer 60 days to pay a claim .”
Lamar Homes, Inc. v. Mid-Continent Cas. Co., 242 S.W.3d 1 (Tex. 2007). “Laws 1043 , 1045 (currently codified as Tex. Ins.Code §§ 542.058, 542.060). . See Tex.”
United Nat'l Ins. Co. v. AMJ Investments, LLC, 447 S.W.3d 1 (Tex. App. 2014). · cites it 2× “See TEX. INS. CODE ANN. §§ 542.058(a), 542.059(b); Mex-Tex, Inc.”
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. Co. v. Martinez, 216 S.W.3d 799 (Tex. 2007). “4 . See Act of June 6, 1991, 72nd Leg., R.S.”
Partain v. Mid-Continent Specialty Ins. Servs., Inc., 838 F. Supp. 2d 547 (S.D. Tex. 2012). · cites it 2× “060(a)(3) of the Texas Insurance Code, Section 542.058 does not require a plaintiff to show that a claim has been denied.”
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/.”
Ron Pounds v. Liberty Lloyd of Texas Ins. Co., 528 S.W.3d 222 (Tex. App. 2017). “” See Tex. Ins. Code Ann. § 542.058 (West 2009).”
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
United Nat'l Ins. Co. v. AMJ Investments, LLC, 447 S.W.3d 1 (Tex. App. 2014). “See TEX. INS. CODE ANN. §§ 542.058(a), 542.059(b); Mex-Tex, Inc.”
Candelaria Garcia v. State Farm Lloyds & Sylvia Garza, 514 S.W.3d 257 (Tex. App. 2016). “Tex. Ins. Code Ann. § 542.058 (a) (West Supp.”
Weiser-Brown Operating Co. v. St. Paul Surplus Lines Ins., 801 F.3d 512 (5th Cir. 2015). “that the insurer reason *525 ably believes, at that time, will be required from the claimant”); see also Tex. Ins. Code § 542.058 (giving an insurer 60 days to pay a claim .”
Randel v. Travelers Lloyds of TX Ins, 9 F.4th 264 (5th Cir. 2021).
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
Joe Partain v. Mid-Continent Cas. Compa, 756 F.3d 388 (5th Cir. 2014).
Heard v. State Farm Lloyds (N.D. Tex. 2025).
— 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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