Sec. 542.060. LIABILITY FOR VIOLATION OF SUBCHAPTER. (a) Except as provided by Subsection (c), if an insurer that is liable for a claim under an insurance policy is not in compliance with this subchapter, the insurer is liable to pay the holder of the policy or the beneficiary making the claim under the policy, in addition to the amount of the claim, interest on the amount of the claim at the rate of 18 percent a year as damages, together with reasonable and necessary attorney's fees. Nothing in this subsection prevents the award of prejudgment interest on the amount of the claim, as provided by law.
(b) If a suit is filed, the attorney's fees shall be taxed as part of the costs in the case.
(c) In an action to which Chapter 542A applies, if an insurer that is liable for a claim under an insurance policy is not in compliance with this subchapter, the insurer is liable to pay the holder of the policy, in addition to the amount of the claim, simple interest on the amount of the claim as damages each year at the rate determined on the date of judgment by adding five percent to the interest rate determined under Section 304.003, Finance Code, together with reasonable and necessary attorney's fees. Nothing in this subsection prevents the award of prejudgment interest on the amount of the claim, as provided by law. Interest awarded under this subsection as damages accrues beginning on the date the claim was required to be paid.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 151 (H.B. 1774), Sec. 2, eff. September 1, 2017.
Notes of Decisions
United Servs. Auto. Ass'n v. Croft, 175 S.W.3d 457 (Tex. App. 2005).
· cites it 2× “Laws 939 , 1045 (repealed) (current version at Tex. Ins.Code Ann. § 542.060 (Vernon Pamph.”
Lamar Homes, Inc. v. Mid-Continent Cas. Co., 242 S.W.3d 1 (Tex. 2007).
“” Tex. Ins.Code § 542.060(a). “Claim” is defined as “a first party claim [] made by an insured or policyholder under an insurance policy or contract or by a beneficiary named in the policy or contract [that] must be paid by the insurer directly to the insured or beneficiary.”
Triyar Companies v. Fireman's Fund Ins. Co., 515 S.W.3d 517 (Tex. App. 2017).
· cites it 3× “The only finding the Triyar Parties obtained of a violation of the Prompt Payment of Claims Act was the jury’s finding in response to Question 6 that Fireman’s Fund violated Insurance Code section 542.”
Lyda Swinerton Builders, Inc. v. Okla. Sur. Co., 903 F.3d 435 (5th Cir. 2018).
“" TEX. INS. CODE § 542.060(a). 6 Having determined that OSC was liable under the PPCA, the district court, in its final judgment, ordered OSC to pay the 18 percent statutory penalty "until the date of payment of this judgment.”
Robert Primo v. Great Am. Ins. Co., 455 S.W.3d 714 (Tex. App. 2014).
· cites it 4× “” Tex. Ins. Code Ann. § 542.060 (a) (West 2009) (emphasis added); see also Progressive Cnty.”
Messersmith v. Nationwide Mut. Fire Ins., 10 F. Supp. 3d 721 (N.D. Tex. 2014).
· cites it 2× “060; the Prompt Payment of Claims Act, Tex. Ins.Code § 542.060; the Texas Deceptive Trade Practices Act (“DTPA), see Tex.”
Terry v. Safeco Ins. Co. of Am., 930 F. Supp. 2d 702 (S.D. Tex. 2013).
· cites it 3× “In contrast, the Prompt Payment Act, Tex. Ins. Code § 542.060, which follows the Unfair Settlement Practices Act in the Texas Insurance Code, explicitly provides for a private right of action.”
United Servs. Auto. Ass'n v. Joseph Hayes, Jr & Joanne Hayes, 507 S.W.3d 263 (Tex. App. 2016).
· cites it 2× “3 See TEX. INS. CODE ANN. § 542.060. 2 Background In their Second Amended Petition, the Hayeses alleged that in September 2008, Hurricane Ike caused damage to their house in Clearlake and Mr.”
Prudential Ins. Co. of Am. v. Durante, 443 S.W.3d 499 (Tex. App. 2014).
· cites it 2× “In addition, the court erred in awarding Sagarnaga statutory penalty interest pursuant to Tex. Ins.Code Ann. § 542.060 (West 2009).”
— Tex. Ins. Code § 542.060(4) — 1 case
— Tex. Ins. Code § 542.060(a) — 53 cases
Lamar Homes, Inc. v. Mid-Continent Cas. Co., 242 S.W.3d 1 (Tex. 2007).
“” Tex. Ins.Code § 542.060(a). “Claim” is defined as “a first party claim [] made by an insured or policyholder under an insurance policy or contract or by a beneficiary named in the policy or contract [that] must be paid by the insurer directly to the insured or beneficiary.”
Lyda Swinerton Builders, Inc. v. Okla. Sur. Co., 903 F.3d 435 (5th Cir. 2018).
“" TEX. INS. CODE § 542.060(a). 6 Having determined that OSC was liable under the PPCA, the district court, in its final judgment, ordered OSC to pay the 18 percent statutory penalty "until the date of payment of this judgment.”
Messersmith v. Nationwide Mut. Fire Ins., 10 F. Supp. 3d 721 (N.D. Tex. 2014).
“060; the Prompt Payment of Claims Act, Tex. Ins.Code § 542.060; the Texas Deceptive Trade Practices Act (“DTPA), see Tex.”
Triyar Companies v. Fireman's Fund Ins. Co., 515 S.W.3d 517 (Tex. App. 2017).
“The only finding the Triyar Parties obtained of a violation of the Prompt Payment of Claims Act was the jury’s finding in response to Question 6 that Fireman’s Fund violated Insurance Code section 542.”
— Tex. Ins. Code § 542.060(a)(2) — 1 case
— Tex. Ins. Code § 542.060(a)(3) — 1 case
— Tex. Ins. Code § 542.060(b) — 4 cases
Terry v. Safeco Ins. Co. of Am., 930 F. Supp. 2d 702 (S.D. Tex. 2013).
“In contrast, the Prompt Payment Act, Tex. Ins. Code § 542.060, which follows the Unfair Settlement Practices Act in the Texas Insurance Code, explicitly provides for a private right of action.”
— Tex. Ins. Code § 542.060(c) — 10 cases
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