If an Insurance Company Is Stalling in Texas
Dealing with a stalling insurance company can be frustrating, especially when you’re counting on funds to repair your home, car, or business. Texas has specific laws that protect policyholders from unnecessary delays, and knowing your rights can help you take action.
Understand Texas Prompt Payment Laws
In Texas, insurance companies must follow the Texas Prompt Payment of Claims Act (TPPCA). This law sets deadlines for insurers to acknowledge your claim, begin their investigation, and make a decision. Typically, insurers must acknowledge your claim within 15 days and decide to approve or deny it within 15 business days after receiving all required information.
Keep Detailed Records
Documentation is very important when you think someone is stalling. Keep all of your emails, letters, and notes from phone calls with your insurance company. Make a note of the dates, times, and names of the people you talked to. If you need to take the problem to a higher level, this paper trail can assist you in proving that the delays were not needed.
Follow Up Consistently
Check on the status of your claim in a kind but assertive way. Ask for detailed reasons for the delay and ask for updates in writing. Following up regularly shows the insurance company that you're serious and gives you more proof in case you need to submit a complaint.
Escalate When Necessary
If the delay continues beyond the legal deadlines, you have options. File a complaint with the Texas Department of Insurance, which investigates unfair practices. You may also consult an attorney who specializes in insurance disputes. In some cases, you may be entitled to penalties or interest for delayed payments under Texas law.
Consider Legal Action
If the insurer is acting in bad faith or violating state law, you may be able to sue for damages, attorney’s fees, and additional compensation. Having proper documentation and evidence of delay strengthens your case.